Correlation Between Jacobs Solutions and AMERICAN
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By analyzing existing cross correlation between Jacobs Solutions and AMERICAN EXPRESS 42, you can compare the effects of market volatilities on Jacobs Solutions and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and AMERICAN.
Diversification Opportunities for Jacobs Solutions and AMERICAN
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacobs and AMERICAN is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and AMERICAN EXPRESS 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and AMERICAN go up and down completely randomly.
Pair Corralation between Jacobs Solutions and AMERICAN
Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 5.21 times more return on investment than AMERICAN. However, Jacobs Solutions is 5.21 times more volatile than AMERICAN EXPRESS 42. It trades about 0.09 of its potential returns per unit of risk. AMERICAN EXPRESS 42 is currently generating about 0.03 per unit of risk. If you would invest 10,538 in Jacobs Solutions on September 3, 2024 and sell it today you would earn a total of 3,449 from holding Jacobs Solutions or generate 32.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Jacobs Solutions vs. AMERICAN EXPRESS 42
Performance |
| Timeline |
| Jacobs Solutions |
| AMERICAN EXPRESS |
Jacobs Solutions and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and AMERICAN
The main advantage of trading using opposite Jacobs Solutions and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| AMERICAN vs. AEP TEX INC | AMERICAN vs. US BANK NATIONAL | AMERICAN vs. Jackson Financial | AMERICAN vs. MetLife |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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