Correlation Between Jabil Circuit and Alliant Energy
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Alliant Energy 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 Alliant Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Alliant Energy Corp, you can compare the effects of market volatilities on Jabil Circuit and Alliant Energy 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 Alliant Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Alliant Energy.
Diversification Opportunities for Jabil Circuit and Alliant Energy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jabil and Alliant is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Alliant Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliant Energy Corp 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 Alliant Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliant Energy Corp has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Alliant Energy go up and down completely randomly.
Pair Corralation between Jabil Circuit and Alliant Energy
Considering the 90-day investment horizon Jabil Circuit is expected to under-perform the Alliant Energy. In addition to that, Jabil Circuit is 1.8 times more volatile than Alliant Energy Corp. It trades about -0.07 of its total potential returns per unit of risk. Alliant Energy Corp is currently generating about 0.66 per unit of volatility. If you would invest 5,837 in Alliant Energy Corp on November 29, 2024 and sell it today you would earn a total of 550.50 from holding Alliant Energy Corp or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jabil Circuit vs. Alliant Energy Corp
Performance |
| Timeline |
| Jabil Circuit |
| Alliant Energy Corp |
Jabil Circuit and Alliant Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Alliant Energy
The main advantage of trading using opposite Jabil Circuit and Alliant Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Alliant Energy 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 Alliant Energy will offset losses from the drop in Alliant Energy's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Alliant Energy vs. DTE Energy | Alliant Energy vs. Ameren Corp | Alliant Energy vs. CenterPoint Energy | Alliant Energy vs. Pinnacle West Capital |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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