Correlation Between Jabil Circuit and Seelos Therapeutics
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Seelos Therapeutics 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 Seelos Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Seelos Therapeutics, you can compare the effects of market volatilities on Jabil Circuit and Seelos Therapeutics 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 Seelos Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Seelos Therapeutics.
Diversification Opportunities for Jabil Circuit and Seelos Therapeutics
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jabil and Seelos is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Seelos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seelos Therapeutics 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 Seelos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seelos Therapeutics has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Seelos Therapeutics go up and down completely randomly.
Pair Corralation between Jabil Circuit and Seelos Therapeutics
If you would invest 14,500 in Jabil Circuit on October 21, 2024 and sell it today you would earn a total of 1,790 from holding Jabil Circuit or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Jabil Circuit vs. Seelos Therapeutics
Performance |
| Timeline |
| Jabil Circuit |
| Seelos Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jabil Circuit and Seelos Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Seelos Therapeutics
The main advantage of trading using opposite Jabil Circuit and Seelos Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Seelos Therapeutics 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 Seelos Therapeutics will offset losses from the drop in Seelos Therapeutics' long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Seelos Therapeutics vs. ATAI Life Sciences | Seelos Therapeutics vs. Mind Medicine | Seelos Therapeutics vs. GH Research PLC | Seelos Therapeutics vs. Cybin Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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