Correlation Between Jacobs Solutions and Shimmick Common
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and Shimmick Common 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 Shimmick Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and Shimmick Common, you can compare the effects of market volatilities on Jacobs Solutions and Shimmick Common 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 Shimmick Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Shimmick Common.
Diversification Opportunities for Jacobs Solutions and Shimmick Common
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacobs and Shimmick is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Shimmick Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shimmick Common 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 Shimmick Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shimmick Common has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Shimmick Common go up and down completely randomly.
Pair Corralation between Jacobs Solutions and Shimmick Common
Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 0.15 times more return on investment than Shimmick Common. However, Jacobs Solutions is 6.75 times less risky than Shimmick Common. It trades about 0.08 of its potential returns per unit of risk. Shimmick Common is currently generating about 0.0 per unit of risk. If you would invest 10,658 in Jacobs Solutions on September 14, 2024 and sell it today you would earn a total of 2,993 from holding Jacobs Solutions or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacobs Solutions vs. Shimmick Common
Performance |
| Timeline |
| Jacobs Solutions |
| Shimmick Common |
Jacobs Solutions and Shimmick Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and Shimmick Common
The main advantage of trading using opposite Jacobs Solutions and Shimmick Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, Shimmick Common 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 Shimmick Common will offset losses from the drop in Shimmick Common's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| Shimmick Common vs. Jacobs Solutions | Shimmick Common vs. Dycom Industries | Shimmick Common vs. Innovate Corp | Shimmick Common vs. Energy Services |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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