Correlation Between Jabil Circuit and Atlantic Union
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Atlantic Union 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 Atlantic Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Atlantic Union Bankshares, you can compare the effects of market volatilities on Jabil Circuit and Atlantic Union 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 Atlantic Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Atlantic Union.
Diversification Opportunities for Jabil Circuit and Atlantic Union
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jabil and Atlantic is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Atlantic Union Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Union Bankshares 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 Atlantic Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Union Bankshares has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Atlantic Union go up and down completely randomly.
Pair Corralation between Jabil Circuit and Atlantic Union
Considering the 90-day investment horizon Jabil Circuit is expected to generate 1.23 times less return on investment than Atlantic Union. In addition to that, Jabil Circuit is 1.92 times more volatile than Atlantic Union Bankshares. It trades about 0.03 of its total potential returns per unit of risk. Atlantic Union Bankshares is currently generating about 0.07 per unit of volatility. If you would invest 1,826 in Atlantic Union Bankshares on September 12, 2024 and sell it today you would earn a total of 659.00 from holding Atlantic Union Bankshares or generate 36.09% 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. Atlantic Union Bankshares
Performance |
| Timeline |
| Jabil Circuit |
| Atlantic Union Bankshares |
Jabil Circuit and Atlantic Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Atlantic Union
The main advantage of trading using opposite Jabil Circuit and Atlantic Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Atlantic Union 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 Atlantic Union will offset losses from the drop in Atlantic Union's long position.| Jabil Circuit vs. Celestica | Jabil Circuit vs. Benchmark Electronics | Jabil Circuit vs. Flex | Jabil Circuit vs. Sanmina |
| Atlantic Union vs. Zane Interactive Publishing | Atlantic Union vs. WEBTOON Entertainment Common | Atlantic Union vs. Udemy Inc | Atlantic Union vs. AMREP |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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