Correlation Between Jabil Circuit and Suburban Propane
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Suburban Propane 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 Suburban Propane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Suburban Propane Partners, you can compare the effects of market volatilities on Jabil Circuit and Suburban Propane 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 Suburban Propane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Suburban Propane.
Diversification Opportunities for Jabil Circuit and Suburban Propane
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jabil and Suburban is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Suburban Propane Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suburban Propane Partners 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 Suburban Propane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suburban Propane Partners has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Suburban Propane go up and down completely randomly.
Pair Corralation between Jabil Circuit and Suburban Propane
Considering the 90-day investment horizon Jabil Circuit is expected to under-perform the Suburban Propane. But the stock apears to be less risky and, when comparing its historical volatility, Jabil Circuit is 1.89 times less risky than Suburban Propane. The stock trades about -0.07 of its potential returns per unit of risk. The Suburban Propane Partners is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,985 in Suburban Propane Partners on November 29, 2024 and sell it today you would earn a total of 101.00 from holding Suburban Propane Partners or generate 5.09% 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. Suburban Propane Partners
Performance |
| Timeline |
| Jabil Circuit |
| Suburban Propane Partners |
Jabil Circuit and Suburban Propane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Suburban Propane
The main advantage of trading using opposite Jabil Circuit and Suburban Propane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Suburban Propane 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 Suburban Propane will offset losses from the drop in Suburban Propane's long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Atmos Energy | Suburban Propane vs. Chesapeake Utilities |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |