Correlation Between Jacobs Solutions and AMGEN
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By analyzing existing cross correlation between Jacobs Solutions and AMGEN INC 44, you can compare the effects of market volatilities on Jacobs Solutions and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and AMGEN.
Diversification Opportunities for Jacobs Solutions and AMGEN
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jacobs and AMGEN is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and AMGEN INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 44 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 44 has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and AMGEN go up and down completely randomly.
Pair Corralation between Jacobs Solutions and AMGEN
Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 1.74 times more return on investment than AMGEN. However, Jacobs Solutions is 1.74 times more volatile than AMGEN INC 44. It trades about 0.12 of its potential returns per unit of risk. AMGEN INC 44 is currently generating about 0.04 per unit of risk. If you would invest 11,470 in Jacobs Solutions on September 1, 2024 and sell it today you would earn a total of 2,653 from holding Jacobs Solutions or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Jacobs Solutions vs. AMGEN INC 44
Performance |
| Timeline |
| Jacobs Solutions |
| AMGEN INC 44 |
Jacobs Solutions and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and AMGEN
The main advantage of trading using opposite Jacobs Solutions and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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