Correlation Between JABIL CIRCUIT and CARSALES
Can any of the company-specific risk be diversified away by investing in both JABIL CIRCUIT and CARSALES 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 JABIL CIRCUIT and CARSALES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JABIL CIRCUIT and CARSALESCOM, you can compare the effects of market volatilities on JABIL CIRCUIT and CARSALES 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 JABIL CIRCUIT with a short position of CARSALES. Check out your portfolio center. Please also check ongoing floating volatility patterns of JABIL CIRCUIT and CARSALES.
Diversification Opportunities for JABIL CIRCUIT and CARSALES
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JABIL and CARSALES is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JABIL CIRCUIT and CARSALESCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARSALESCOM and JABIL CIRCUIT 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 JABIL CIRCUIT are associated (or correlated) with CARSALES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARSALESCOM has no effect on the direction of JABIL CIRCUIT i.e., JABIL CIRCUIT and CARSALES go up and down completely randomly.
Pair Corralation between JABIL CIRCUIT and CARSALES
Assuming the 90 days trading horizon JABIL CIRCUIT is expected to generate 1.42 times more return on investment than CARSALES. However, JABIL CIRCUIT is 1.42 times more volatile than CARSALESCOM. It trades about 0.06 of its potential returns per unit of risk. CARSALESCOM is currently generating about 0.09 per unit of risk. If you would invest 6,764 in JABIL CIRCUIT on September 3, 2024 and sell it today you would earn a total of 5,811 from holding JABIL CIRCUIT or generate 85.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JABIL CIRCUIT vs. CARSALESCOM
Performance |
| Timeline |
| JABIL CIRCUIT |
| CARSALESCOM |
JABIL CIRCUIT and CARSALES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JABIL CIRCUIT and CARSALES
The main advantage of trading using opposite JABIL CIRCUIT and CARSALES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JABIL CIRCUIT position performs unexpectedly, CARSALES 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 CARSALES will offset losses from the drop in CARSALES's long position.| JABIL CIRCUIT vs. CARSALESCOM | JABIL CIRCUIT vs. ELMOS SEMICONDUCTOR | JABIL CIRCUIT vs. YATRA ONLINE DL 0001 | JABIL CIRCUIT vs. JAPAN AIRLINES |
| CARSALES vs. COMBA TELECOM SYST | CARSALES vs. SENECA FOODS A | CARSALES vs. Entravision Communications | CARSALES vs. JJ SNACK FOODS |
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.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |