Correlation Between Network 1 and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Network 1 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 Network 1 and Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Network 1 Technologies and Jabil Circuit, you can compare the effects of market volatilities on Network 1 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 Network 1 with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network 1 and Jabil Circuit.
Diversification Opportunities for Network 1 and Jabil Circuit
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Network and Jabil is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Network 1 Technologies and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Network 1 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 Network 1 Technologies 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 Network 1 i.e., Network 1 and Jabil Circuit go up and down completely randomly.
Pair Corralation between Network 1 and Jabil Circuit
Given the investment horizon of 90 days Network 1 Technologies is expected to generate 0.76 times more return on investment than Jabil Circuit. However, Network 1 Technologies is 1.31 times less risky than Jabil Circuit. It trades about 0.18 of its potential returns per unit of risk. Jabil Circuit is currently generating about 0.13 per unit of risk. If you would invest 129.00 in Network 1 Technologies on August 23, 2024 and sell it today you would earn a total of 8.00 from holding Network 1 Technologies or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Network 1 Technologies vs. Jabil Circuit
Performance |
| Timeline |
| Network 1 Technologies |
| Jabil Circuit |
Network 1 and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Network 1 and Jabil Circuit
The main advantage of trading using opposite Network 1 and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network 1 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.| Network 1 vs. Civeo Corp | Network 1 vs. BrightView Holdings | Network 1 vs. Maximus | Network 1 vs. CBIZ Inc |
| 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |