Correlation Between Jabil Circuit and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Marimaca Copper 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 Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Marimaca Copper Corp, you can compare the effects of market volatilities on Jabil Circuit and Marimaca Copper 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 Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Marimaca Copper.
Diversification Opportunities for Jabil Circuit and Marimaca Copper
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jabil and Marimaca is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper 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 Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Marimaca Copper go up and down completely randomly.
Pair Corralation between Jabil Circuit and Marimaca Copper
Considering the 90-day investment horizon Jabil Circuit is expected to generate 1.79 times less return on investment than Marimaca Copper. But when comparing it to its historical volatility, Jabil Circuit is 1.24 times less risky than Marimaca Copper. It trades about 0.05 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Marimaca Copper Corp on November 2, 2024 and sell it today you would earn a total of 136.00 from holding Marimaca Copper Corp or generate 54.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. Marimaca Copper Corp
Performance |
| Timeline |
| Jabil Circuit |
| Marimaca Copper Corp |
Jabil Circuit and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Marimaca Copper
The main advantage of trading using opposite Jabil Circuit and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Marimaca Copper vs. Freeport McMoran Copper Gold | Marimaca Copper vs. Antofagasta PLC | Marimaca Copper vs. First Quantum Minerals | Marimaca Copper vs. Jiangxi Copper |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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