Correlation Between Jabil Circuit and Satellogic Warrant
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Satellogic Warrant 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 Satellogic Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Satellogic Warrant, you can compare the effects of market volatilities on Jabil Circuit and Satellogic Warrant 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 Satellogic Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Satellogic Warrant.
Diversification Opportunities for Jabil Circuit and Satellogic Warrant
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jabil and Satellogic is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Satellogic Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic Warrant 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 Satellogic Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic Warrant has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Satellogic Warrant go up and down completely randomly.
Pair Corralation between Jabil Circuit and Satellogic Warrant
Considering the 90-day investment horizon Jabil Circuit is expected to generate 513.8 times less return on investment than Satellogic Warrant. But when comparing it to its historical volatility, Jabil Circuit is 81.47 times less risky than Satellogic Warrant. It trades about 0.03 of its potential returns per unit of risk. Satellogic Warrant is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Satellogic Warrant on August 27, 2024 and sell it today you would lose (2.50) from holding Satellogic Warrant or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 49.19% |
| Values | Daily Returns |
Jabil Circuit vs. Satellogic Warrant
Performance |
| Timeline |
| Jabil Circuit |
| Satellogic Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Jabil Circuit and Satellogic Warrant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Satellogic Warrant
The main advantage of trading using opposite Jabil Circuit and Satellogic Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Satellogic Warrant 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 Satellogic Warrant will offset losses from the drop in Satellogic Warrant's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Satellogic Warrant vs. Plexus Corp | Satellogic Warrant vs. Benchmark Electronics | Satellogic Warrant vs. Jabil Circuit | Satellogic Warrant vs. Sanmina |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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