Correlation Between Jabil Circuit and Amphenol
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Amphenol 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 Amphenol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Amphenol, you can compare the effects of market volatilities on Jabil Circuit and Amphenol 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 Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Amphenol.
Diversification Opportunities for Jabil Circuit and Amphenol
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jabil and Amphenol is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol 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 Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Amphenol go up and down completely randomly.
Pair Corralation between Jabil Circuit and Amphenol
Considering the 90-day investment horizon Jabil Circuit is expected to generate 1.26 times less return on investment than Amphenol. In addition to that, Jabil Circuit is 1.17 times more volatile than Amphenol. It trades about 0.13 of its total potential returns per unit of risk. Amphenol is currently generating about 0.19 per unit of volatility. If you would invest 6,868 in Amphenol on August 27, 2024 and sell it today you would earn a total of 461.00 from holding Amphenol or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. Amphenol
Performance |
| Timeline |
| Jabil Circuit |
| Amphenol |
Jabil Circuit and Amphenol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Amphenol
The main advantage of trading using opposite Jabil Circuit and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Amphenol vs. Plexus Corp | Amphenol vs. Jabil Circuit | Amphenol vs. Sanmina | Amphenol vs. Methode Electronics |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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