Correlation Between Jabil Circuit and Ag Growth
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Ag Growth 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 Ag Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Ag Growth International, you can compare the effects of market volatilities on Jabil Circuit and Ag Growth 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 Ag Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Ag Growth.
Diversification Opportunities for Jabil Circuit and Ag Growth
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jabil and AGGZF is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Ag Growth International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ag Growth International 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 Ag Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ag Growth International has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Ag Growth go up and down completely randomly.
Pair Corralation between Jabil Circuit and Ag Growth
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.89 times more return on investment than Ag Growth. However, Jabil Circuit is 1.13 times less risky than Ag Growth. It trades about 0.07 of its potential returns per unit of risk. Ag Growth International is currently generating about -0.02 per unit of risk. If you would invest 8,350 in Jabil Circuit on November 2, 2024 and sell it today you would earn a total of 7,748 from holding Jabil Circuit or generate 92.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.05% |
| Values | Daily Returns |
Jabil Circuit vs. Ag Growth International
Performance |
| Timeline |
| Jabil Circuit |
| Ag Growth International |
Jabil Circuit and Ag Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Ag Growth
The main advantage of trading using opposite Jabil Circuit and Ag Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Ag Growth 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 Ag Growth will offset losses from the drop in Ag Growth's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Ag Growth vs. First Tractor | Ag Growth vs. AmeraMex International | Ag Growth vs. Arts Way Manufacturing Co | Ag Growth vs. American Premium Water |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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