Correlation Between Jacobs Solutions and Eastgate Biotech
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and Eastgate Biotech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jacobs Solutions and Eastgate Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and Eastgate Biotech Corp, you can compare the effects of market volatilities on Jacobs Solutions and Eastgate Biotech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jacobs Solutions with a short position of Eastgate Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Eastgate Biotech.
Diversification Opportunities for Jacobs Solutions and Eastgate Biotech
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacobs and Eastgate is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Eastgate Biotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastgate Biotech Corp and Jacobs Solutions is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jacobs Solutions are associated (or correlated) with Eastgate Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastgate Biotech Corp has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Eastgate Biotech go up and down completely randomly.
Pair Corralation between Jacobs Solutions and Eastgate Biotech
If you would invest 11,874 in Jacobs Solutions on September 12, 2024 and sell it today you would earn a total of 1,638 from holding Jacobs Solutions or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Jacobs Solutions vs. Eastgate Biotech Corp
Performance |
| Timeline |
| Jacobs Solutions |
| Eastgate Biotech Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jacobs Solutions and Eastgate Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and Eastgate Biotech
The main advantage of trading using opposite Jacobs Solutions and Eastgate Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, Eastgate Biotech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eastgate Biotech will offset losses from the drop in Eastgate Biotech's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| Eastgate Biotech vs. ICC Holdings | Eastgate Biotech vs. Jacobs Solutions | Eastgate Biotech vs. GoHealth | Eastgate Biotech vs. NI Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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