Correlation Between Jabil Circuit and SigmaTron International
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and SigmaTron International 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 SigmaTron International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and SigmaTron International, you can compare the effects of market volatilities on Jabil Circuit and SigmaTron International 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 SigmaTron International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and SigmaTron International.
Diversification Opportunities for Jabil Circuit and SigmaTron International
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jabil and SigmaTron is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and SigmaTron International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SigmaTron International 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 SigmaTron International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SigmaTron International has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and SigmaTron International go up and down completely randomly.
Pair Corralation between Jabil Circuit and SigmaTron International
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.53 times more return on investment than SigmaTron International. However, Jabil Circuit is 1.9 times less risky than SigmaTron International. It trades about 0.05 of its potential returns per unit of risk. SigmaTron International is currently generating about -0.02 per unit of risk. If you would invest 8,420 in Jabil Circuit on January 10, 2025 and sell it today you would earn a total of 4,633 from holding Jabil Circuit or generate 55.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jabil Circuit vs. SigmaTron International
Performance |
| Timeline |
| Jabil Circuit |
| SigmaTron International |
Jabil Circuit and SigmaTron International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and SigmaTron International
The main advantage of trading using opposite Jabil Circuit and SigmaTron International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, SigmaTron International 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 SigmaTron International will offset losses from the drop in SigmaTron International's long position.| Jabil Circuit vs. CACI International | Jabil Circuit vs. Jack Henry Associates | Jabil Circuit vs. Broadridge Financial Solutions | Jabil Circuit vs. ExlService Holdings |
| SigmaTron International vs. Integrated Media Technology | SigmaTron International vs. Data IO | SigmaTron International vs. Research Frontiers Incorporated | SigmaTron International vs. Maris Tech |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |