Correlation Between Jabil Circuit and Golden Heaven
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Golden Heaven 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 Golden Heaven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Golden Heaven Group, you can compare the effects of market volatilities on Jabil Circuit and Golden Heaven 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 Golden Heaven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Golden Heaven.
Diversification Opportunities for Jabil Circuit and Golden Heaven
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jabil and Golden is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Golden Heaven Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Heaven Group 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 Golden Heaven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Heaven Group has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Golden Heaven go up and down completely randomly.
Pair Corralation between Jabil Circuit and Golden Heaven
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.34 times more return on investment than Golden Heaven. However, Jabil Circuit is 2.91 times less risky than Golden Heaven. It trades about 0.28 of its potential returns per unit of risk. Golden Heaven Group is currently generating about -0.25 per unit of risk. If you would invest 14,283 in Jabil Circuit on November 3, 2024 and sell it today you would earn a total of 1,958 from holding Jabil Circuit or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. Golden Heaven Group
Performance |
| Timeline |
| Jabil Circuit |
| Golden Heaven Group |
Jabil Circuit and Golden Heaven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Golden Heaven
The main advantage of trading using opposite Jabil Circuit and Golden Heaven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Golden Heaven 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 Golden Heaven will offset losses from the drop in Golden Heaven's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Golden Heaven vs. Kellanova | Golden Heaven vs. Lianhua Supermarket Holdings | Golden Heaven vs. Sysco | Golden Heaven vs. FitLife Brands, Common |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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