Correlation Between Jacobs Solutions and Nixxy,
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and Nixxy, 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 Nixxy, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and Nixxy, Inc, you can compare the effects of market volatilities on Jacobs Solutions and Nixxy, 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 Nixxy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Nixxy,.
Diversification Opportunities for Jacobs Solutions and Nixxy,
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacobs and Nixxy, is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Nixxy, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nixxy, Inc 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 Nixxy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nixxy, Inc has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Nixxy, go up and down completely randomly.
Pair Corralation between Jacobs Solutions and Nixxy,
Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 0.45 times more return on investment than Nixxy,. However, Jacobs Solutions is 2.24 times less risky than Nixxy,. It trades about 0.01 of its potential returns per unit of risk. Nixxy, Inc is currently generating about -0.04 per unit of risk. If you would invest 14,120 in Jacobs Solutions on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Jacobs Solutions or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacobs Solutions vs. Nixxy, Inc
Performance |
| Timeline |
| Jacobs Solutions |
| Nixxy, Inc |
Jacobs Solutions and Nixxy, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and Nixxy,
The main advantage of trading using opposite Jacobs Solutions and Nixxy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, Nixxy, 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 Nixxy, will offset losses from the drop in Nixxy,'s long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |