Correlation Between BARCLAYS and Jacobs Solutions
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By analyzing existing cross correlation between BARCLAYS PLC and Jacobs Solutions, you can compare the effects of market volatilities on BARCLAYS and Jacobs Solutions 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 BARCLAYS with a short position of Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of BARCLAYS and Jacobs Solutions.
Diversification Opportunities for BARCLAYS and Jacobs Solutions
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BARCLAYS and Jacobs is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding BARCLAYS PLC and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions and BARCLAYS 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 BARCLAYS PLC are associated (or correlated) with Jacobs Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacobs Solutions has no effect on the direction of BARCLAYS i.e., BARCLAYS and Jacobs Solutions go up and down completely randomly.
Pair Corralation between BARCLAYS and Jacobs Solutions
Assuming the 90 days trading horizon BARCLAYS PLC is expected to generate 0.28 times more return on investment than Jacobs Solutions. However, BARCLAYS PLC is 3.58 times less risky than Jacobs Solutions. It trades about 0.24 of its potential returns per unit of risk. Jacobs Solutions is currently generating about -0.31 per unit of risk. If you would invest 8,762 in BARCLAYS PLC on November 29, 2024 and sell it today you would earn a total of 82.00 from holding BARCLAYS PLC or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
BARCLAYS PLC vs. Jacobs Solutions
Performance |
| Timeline |
| BARCLAYS PLC |
| Jacobs Solutions |
BARCLAYS and Jacobs Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BARCLAYS and Jacobs Solutions
The main advantage of trading using opposite BARCLAYS and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BARCLAYS position performs unexpectedly, Jacobs Solutions 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 Jacobs Solutions will offset losses from the drop in Jacobs Solutions' long position.| BARCLAYS vs. Triton International Limited | BARCLAYS vs. Federal Home Loan | BARCLAYS vs. China Aircraft Leasing | BARCLAYS vs. Dream Finders Homes |
| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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