Correlation Between Jabil Circuit and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Mativ Holdings 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 Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Mativ Holdings, you can compare the effects of market volatilities on Jabil Circuit and Mativ Holdings 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 Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Mativ Holdings.
Diversification Opportunities for Jabil Circuit and Mativ Holdings
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jabil and Mativ is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings 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 Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Mativ Holdings go up and down completely randomly.
Pair Corralation between Jabil Circuit and Mativ Holdings
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.57 times more return on investment than Mativ Holdings. However, Jabil Circuit is 1.75 times less risky than Mativ Holdings. It trades about 0.21 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.12 per unit of risk. If you would invest 10,335 in Jabil Circuit on September 3, 2024 and sell it today you would earn a total of 3,248 from holding Jabil Circuit or generate 31.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. Mativ Holdings
Performance |
| Timeline |
| Jabil Circuit |
| Mativ Holdings |
Jabil Circuit and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Mativ Holdings
The main advantage of trading using opposite Jabil Circuit and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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