Correlation Between Jabil Circuit and Forza Petroleum
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Forza Petroleum 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 Forza Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Forza Petroleum Limited, you can compare the effects of market volatilities on Jabil Circuit and Forza Petroleum 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 Forza Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Forza Petroleum.
Diversification Opportunities for Jabil Circuit and Forza Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jabil and Forza is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Forza Petroleum Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forza Petroleum 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 Forza Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forza Petroleum has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Forza Petroleum go up and down completely randomly.
Pair Corralation between Jabil Circuit and Forza Petroleum
If you would invest 12,301 in Jabil Circuit on September 1, 2024 and sell it today you would earn a total of 1,282 from holding Jabil Circuit or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jabil Circuit vs. Forza Petroleum Limited
Performance |
| Timeline |
| Jabil Circuit |
| Forza Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jabil Circuit and Forza Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Forza Petroleum
The main advantage of trading using opposite Jabil Circuit and Forza Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Forza Petroleum 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 Forza Petroleum will offset losses from the drop in Forza Petroleum's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Forza Petroleum vs. Stepstone Group | Forza Petroleum vs. Coupang LLC | Forza Petroleum vs. Franklin Credit Management | Forza Petroleum vs. PennantPark Floating Rate |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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