Correlation Between Jabil Circuit and Kopin
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Kopin 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 Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Kopin, you can compare the effects of market volatilities on Jabil Circuit and Kopin 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 Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Kopin.
Diversification Opportunities for Jabil Circuit and Kopin
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jabil and Kopin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin 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 Kopin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopin has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Kopin go up and down completely randomly.
Pair Corralation between Jabil Circuit and Kopin
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.47 times more return on investment than Kopin. However, Jabil Circuit is 2.13 times less risky than Kopin. It trades about 0.04 of its potential returns per unit of risk. Kopin is currently generating about 0.02 per unit of risk. If you would invest 10,253 in Jabil Circuit on September 12, 2024 and sell it today you would earn a total of 3,022 from holding Jabil Circuit or generate 29.47% 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. Kopin
Performance |
| Timeline |
| Jabil Circuit |
| Kopin |
Jabil Circuit and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Kopin
The main advantage of trading using opposite Jabil Circuit and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Kopin 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 Kopin will offset losses from the drop in Kopin's long position.| Jabil Circuit vs. Benchmark Electronics | Jabil Circuit vs. Flex | Jabil Circuit vs. Sanmina | Jabil Circuit vs. Bel Fuse A |
| Kopin vs. Universal Display | Kopin vs. Daktronics | Kopin vs. KULR Technology Group | Kopin vs. LightPath Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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