Correlation Between Jabil Circuit and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Benchmark Electronics 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 Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Benchmark Electronics, you can compare the effects of market volatilities on Jabil Circuit and Benchmark Electronics 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 Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Benchmark Electronics.
Diversification Opportunities for Jabil Circuit and Benchmark Electronics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jabil and Benchmark is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics 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 Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Jabil Circuit and Benchmark Electronics
Considering the 90-day investment horizon Jabil Circuit is expected to generate 2.36 times less return on investment than Benchmark Electronics. But when comparing it to its historical volatility, Jabil Circuit is 1.6 times less risky than Benchmark Electronics. It trades about 0.11 of its potential returns per unit of risk. Benchmark Electronics is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,295 in Benchmark Electronics on August 24, 2024 and sell it today you would earn a total of 470.00 from holding Benchmark Electronics or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jabil Circuit vs. Benchmark Electronics
Performance |
| Timeline |
| Jabil Circuit |
| Benchmark Electronics |
Jabil Circuit and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Benchmark Electronics
The main advantage of trading using opposite Jabil Circuit and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Benchmark Electronics 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Benchmark Electronics vs. Plexus Corp | Benchmark Electronics vs. Jabil Circuit | Benchmark Electronics vs. Rogers | Benchmark Electronics vs. Sanmina |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |