Correlation Between Interlink Electronics and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Interlink 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 Interlink 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 Interlink Electronics and Jabil Circuit, you can compare the effects of market volatilities on Interlink 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 Interlink Electronics with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlink Electronics and Jabil Circuit.
Diversification Opportunities for Interlink Electronics and Jabil Circuit
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Interlink and Jabil is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Electronics and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Interlink 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 Interlink 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 Interlink Electronics i.e., Interlink Electronics and Jabil Circuit go up and down completely randomly.
Pair Corralation between Interlink Electronics and Jabil Circuit
Given the investment horizon of 90 days Interlink Electronics is expected to generate 1.85 times less return on investment than Jabil Circuit. In addition to that, Interlink Electronics is 2.67 times more volatile than Jabil Circuit. It trades about 0.04 of its total potential returns per unit of risk. Jabil Circuit is currently generating about 0.21 per unit of volatility. If you would invest 12,390 in Jabil Circuit on August 31, 2024 and sell it today you would earn a total of 1,193 from holding Jabil Circuit or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlink Electronics vs. Jabil Circuit
Performance |
| Timeline |
| Interlink Electronics |
| Jabil Circuit |
Interlink Electronics and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlink Electronics and Jabil Circuit
The main advantage of trading using opposite Interlink Electronics and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink 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.| Interlink Electronics vs. Methode Electronics | Interlink Electronics vs. Bel Fuse A | Interlink Electronics vs. CTS Corporation | Interlink Electronics vs. MicroCloud Hologram |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |