Correlation Between United Microelectronics and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both United Microelectronics 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 United Microelectronics and Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and Jabil Circuit, you can compare the effects of market volatilities on United Microelectronics 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 United Microelectronics with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and Jabil Circuit.
Diversification Opportunities for United Microelectronics and Jabil Circuit
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Jabil is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and United Microelectronics 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 United Microelectronics 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 United Microelectronics i.e., United Microelectronics and Jabil Circuit go up and down completely randomly.
Pair Corralation between United Microelectronics and Jabil Circuit
Considering the 90-day investment horizon United Microelectronics is expected to under-perform the Jabil Circuit. But the stock apears to be less risky and, when comparing its historical volatility, United Microelectronics is 1.25 times less risky than Jabil Circuit. The stock trades about -0.23 of its potential returns per unit of risk. The Jabil Circuit is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 10,565 in Jabil Circuit on September 14, 2024 and sell it today you would earn a total of 2,799 from holding Jabil Circuit or generate 26.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Microelectronics vs. Jabil Circuit
Performance |
| Timeline |
| United Microelectronics |
| Jabil Circuit |
United Microelectronics and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and Jabil Circuit
The main advantage of trading using opposite United Microelectronics and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics 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.| United Microelectronics vs. Silicon Motion Technology | United Microelectronics vs. ASE Industrial Holding | United Microelectronics vs. ChipMOS Technologies | United Microelectronics vs. SemiLEDS |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |