Correlation Between Jabil Circuit and NextPoint Financial
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and NextPoint Financial 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 NextPoint Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and NextPoint Financial, you can compare the effects of market volatilities on Jabil Circuit and NextPoint Financial 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 NextPoint Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and NextPoint Financial.
Diversification Opportunities for Jabil Circuit and NextPoint Financial
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jabil and NextPoint is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and NextPoint Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextPoint Financial 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 NextPoint Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextPoint Financial has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and NextPoint Financial go up and down completely randomly.
Pair Corralation between Jabil Circuit and NextPoint Financial
If you would invest 14,966 in Jabil Circuit on November 4, 2024 and sell it today you would earn a total of 1,275 from holding Jabil Circuit or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Jabil Circuit vs. NextPoint Financial
Performance |
| Timeline |
| Jabil Circuit |
| NextPoint Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jabil Circuit and NextPoint Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and NextPoint Financial
The main advantage of trading using opposite Jabil Circuit and NextPoint Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, NextPoint Financial 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 NextPoint Financial will offset losses from the drop in NextPoint Financial's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| NextPoint Financial vs. B Riley Financial | NextPoint Financial vs. B Riley Financial | NextPoint Financial vs. Lendingtree | NextPoint Financial vs. Voya Financial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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