Correlation Between Jabil Circuit and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Agnico Eagle 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 Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Agnico Eagle Mines, you can compare the effects of market volatilities on Jabil Circuit and Agnico Eagle 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 Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Agnico Eagle.
Diversification Opportunities for Jabil Circuit and Agnico Eagle
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jabil and Agnico is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines 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 Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Agnico Eagle go up and down completely randomly.
Pair Corralation between Jabil Circuit and Agnico Eagle
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.81 times more return on investment than Agnico Eagle. However, Jabil Circuit is 1.23 times less risky than Agnico Eagle. It trades about 0.17 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about -0.1 per unit of risk. If you would invest 12,471 in Jabil Circuit on August 28, 2024 and sell it today you would earn a total of 929.00 from holding Jabil Circuit or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. Agnico Eagle Mines
Performance |
| Timeline |
| Jabil Circuit |
| Agnico Eagle Mines |
Jabil Circuit and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Agnico Eagle
The main advantage of trading using opposite Jabil Circuit and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Agnico Eagle 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 Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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