Correlation Between Mativ Holdings and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings 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 Mativ Holdings and Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Jabil Circuit, you can compare the effects of market volatilities on Mativ Holdings 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 Mativ Holdings with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Jabil Circuit.
Diversification Opportunities for Mativ Holdings and Jabil Circuit
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Jabil is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings i.e., Mativ Holdings and Jabil Circuit go up and down completely randomly.
Pair Corralation between Mativ Holdings and Jabil Circuit
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Jabil Circuit. In addition to that, Mativ Holdings is 1.75 times more volatile than Jabil Circuit. It trades about -0.12 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 10,335 in Jabil Circuit on September 3, 2024 and sell it today you would earn a total of 3,248 from holding Jabil Circuit or generate 31.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Jabil Circuit
Performance |
| Timeline |
| Mativ Holdings |
| Jabil Circuit |
Mativ Holdings and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Jabil Circuit
The main advantage of trading using opposite Mativ Holdings and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings 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.| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |