Correlation Between Kimball Electronics and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics and Jabil Circuit 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 Kimball Electronics and Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Jabil Circuit, you can compare the effects of market volatilities on Kimball Electronics and Jabil Circuit 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 Kimball Electronics with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Jabil Circuit.
Diversification Opportunities for Kimball Electronics and Jabil Circuit
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimball and Jabil is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Kimball Electronics 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 Kimball Electronics are associated (or correlated) with Jabil Circuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jabil Circuit has no effect on the direction of Kimball Electronics i.e., Kimball Electronics and Jabil Circuit go up and down completely randomly.
Pair Corralation between Kimball Electronics and Jabil Circuit
Allowing for the 90-day total investment horizon Kimball Electronics is expected to under-perform the Jabil Circuit. In addition to that, Kimball Electronics is 1.62 times more volatile than Jabil Circuit. It trades about -0.2 of its total potential returns per unit of risk. Jabil Circuit is currently generating about 0.01 per unit of volatility. If you would invest 13,544 in Jabil Circuit on September 10, 2024 and sell it today you would earn a total of 20.00 from holding Jabil Circuit or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kimball Electronics vs. Jabil Circuit
Performance |
| Timeline |
| Kimball Electronics |
| Jabil Circuit |
Kimball Electronics and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimball Electronics and Jabil Circuit
The main advantage of trading using opposite Kimball Electronics and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics position performs unexpectedly, Jabil Circuit 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 Jabil Circuit will offset losses from the drop in Jabil Circuit's long position.| Kimball Electronics vs. Hayward Holdings | Kimball Electronics vs. Enersys | Kimball Electronics vs. Espey Mfg Electronics | Kimball Electronics vs. Advanced Energy Industries |
| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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