Correlation Between Jabil Circuit and Fluent
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Fluent Inc, you can compare the effects of market volatilities on Jabil Circuit and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Fluent.
Diversification Opportunities for Jabil Circuit and Fluent
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jabil and Fluent is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Fluent go up and down completely randomly.
Pair Corralation between Jabil Circuit and Fluent
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.46 times more return on investment than Fluent. However, Jabil Circuit is 2.19 times less risky than Fluent. It trades about 0.24 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.05 per unit of risk. If you would invest 12,301 in Jabil Circuit on September 1, 2024 and sell it today you would earn a total of 1,282 from holding Jabil Circuit or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. Fluent Inc
Performance |
| Timeline |
| Jabil Circuit |
| Fluent Inc |
Jabil Circuit and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Fluent
The main advantage of trading using opposite Jabil Circuit and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
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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