Correlation Between Jabil Circuit and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Amkor Technology 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 Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Amkor Technology, you can compare the effects of market volatilities on Jabil Circuit and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Amkor Technology.
Diversification Opportunities for Jabil Circuit and Amkor Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jabil and Amkor is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Amkor Technology go up and down completely randomly.
Pair Corralation between Jabil Circuit and Amkor Technology
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.85 times more return on investment than Amkor Technology. However, Jabil Circuit is 1.17 times less risky than Amkor Technology. It trades about 0.07 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 8,367 in Jabil Circuit on November 6, 2024 and sell it today you would earn a total of 7,874 from holding Jabil Circuit or generate 94.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. Amkor Technology
Performance |
| Timeline |
| Jabil Circuit |
| Amkor Technology |
Jabil Circuit and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Amkor Technology
The main advantage of trading using opposite Jabil Circuit and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Amkor Technology vs. First Solar | Amkor Technology vs. Sunrun Inc | Amkor Technology vs. Canadian Solar | Amkor Technology vs. SolarEdge Technologies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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