Correlation Between Meta Materials and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Meta Materials 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 Meta Materials and Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Materials and Jabil Circuit, you can compare the effects of market volatilities on Meta Materials 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 Meta Materials with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Materials and Jabil Circuit.
Diversification Opportunities for Meta Materials and Jabil Circuit
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Meta and Jabil is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Meta Materials and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Meta Materials 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 Meta Materials 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 Meta Materials i.e., Meta Materials and Jabil Circuit go up and down completely randomly.
Pair Corralation between Meta Materials and Jabil Circuit
Given the investment horizon of 90 days Meta Materials is expected to under-perform the Jabil Circuit. In addition to that, Meta Materials is 7.79 times more volatile than Jabil Circuit. It trades about -0.03 of its total potential returns per unit of risk. Jabil Circuit is currently generating about 0.04 per unit of volatility. If you would invest 10,253 in Jabil Circuit on September 12, 2024 and sell it today you would earn a total of 3,022 from holding Jabil Circuit or generate 29.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.09% |
| Values | Daily Returns |
Meta Materials vs. Jabil Circuit
Performance |
| Timeline |
| Meta Materials |
| Jabil Circuit |
Meta Materials and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Materials and Jabil Circuit
The main advantage of trading using opposite Meta Materials and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Materials 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.| Meta Materials vs. Cps Technologies | Meta Materials vs. Kopin | Meta Materials vs. Wallbox NV | Meta Materials vs. Corning Incorporated |
| Jabil Circuit vs. Benchmark Electronics | Jabil Circuit vs. Flex | Jabil Circuit vs. Sanmina | Jabil Circuit vs. Bel Fuse A |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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