Correlation Between Jacobs Solutions and SANDS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jacobs Solutions and SANDS CHINA LTD, you can compare the effects of market volatilities on Jacobs Solutions and SANDS 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 SANDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and SANDS.
Diversification Opportunities for Jacobs Solutions and SANDS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacobs and SANDS is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and SANDS CHINA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANDS CHINA LTD 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 SANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANDS CHINA LTD has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and SANDS go up and down completely randomly.
Pair Corralation between Jacobs Solutions and SANDS
Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 6.26 times more return on investment than SANDS. However, Jacobs Solutions is 6.26 times more volatile than SANDS CHINA LTD. It trades about 0.03 of its potential returns per unit of risk. SANDS CHINA LTD is currently generating about -0.22 per unit of risk. If you would invest 13,984 in Jacobs Solutions on September 3, 2024 and sell it today you would earn a total of 139.00 from holding Jacobs Solutions or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Jacobs Solutions vs. SANDS CHINA LTD
Performance |
| Timeline |
| Jacobs Solutions |
| SANDS CHINA LTD |
Jacobs Solutions and SANDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and SANDS
The main advantage of trading using opposite Jacobs Solutions and SANDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, SANDS 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 SANDS will offset losses from the drop in SANDS's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| SANDS vs. Ryman Hospitality Properties | SANDS vs. FTAI Aviation Ltd | SANDS vs. Meli Hotels International | SANDS vs. Global Ship Lease |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |