Correlation Between CREDIT and Jacobs Solutions
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By analyzing existing cross correlation between CREDIT SUISSE AG and Jacobs Solutions, you can compare the effects of market volatilities on CREDIT 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 CREDIT with a short position of Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDIT and Jacobs Solutions.
Diversification Opportunities for CREDIT and Jacobs Solutions
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CREDIT and Jacobs is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT SUISSE AG and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions and CREDIT 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 CREDIT SUISSE AG 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 CREDIT i.e., CREDIT and Jacobs Solutions go up and down completely randomly.
Pair Corralation between CREDIT and Jacobs Solutions
Assuming the 90 days trading horizon CREDIT is expected to generate 2.39 times less return on investment than Jacobs Solutions. But when comparing it to its historical volatility, CREDIT SUISSE AG is 39.17 times less risky than Jacobs Solutions. It trades about 0.18 of its potential returns per unit of risk. Jacobs Solutions is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 13,984 in Jacobs Solutions on September 4, 2024 and sell it today you would earn a total of 3.00 from holding Jacobs Solutions or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 76.19% |
| Values | Daily Returns |
CREDIT SUISSE AG vs. Jacobs Solutions
Performance |
| Timeline |
| CREDIT SUISSE AG |
| Jacobs Solutions |
CREDIT and Jacobs Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDIT and Jacobs Solutions
The main advantage of trading using opposite CREDIT and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT 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.| CREDIT vs. Highway Holdings Limited | CREDIT vs. Boot Barn Holdings | CREDIT vs. Ross Stores | CREDIT vs. Western Acquisition Ventures |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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