Correlation Between Jabil Circuit and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and OSI Systems 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 OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and OSI Systems, you can compare the effects of market volatilities on Jabil Circuit and OSI Systems 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 OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and OSI Systems.
Diversification Opportunities for Jabil Circuit and OSI Systems
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jabil and OSI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems 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 OSI Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSI Systems has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and OSI Systems go up and down completely randomly.
Pair Corralation between Jabil Circuit and OSI Systems
Considering the 90-day investment horizon Jabil Circuit is expected to generate 3.28 times less return on investment than OSI Systems. But when comparing it to its historical volatility, Jabil Circuit is 1.31 times less risky than OSI Systems. It trades about 0.11 of its potential returns per unit of risk. OSI Systems is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 14,215 in OSI Systems on August 24, 2024 and sell it today you would earn a total of 2,318 from holding OSI Systems or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jabil Circuit vs. OSI Systems
Performance |
| Timeline |
| Jabil Circuit |
| OSI Systems |
Jabil Circuit and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and OSI Systems
The main advantage of trading using opposite Jabil Circuit and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, OSI Systems 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 OSI Systems will offset losses from the drop in OSI Systems' long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
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 CEOs Directory module to screen CEOs from public companies around the world.
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