Correlation Between MICROSOFT and Jabil Circuit
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By analyzing existing cross correlation between MICROSOFT PORATION and Jabil Circuit, you can compare the effects of market volatilities on MICROSOFT 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 MICROSOFT with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of MICROSOFT and Jabil Circuit.
Diversification Opportunities for MICROSOFT and Jabil Circuit
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MICROSOFT and Jabil is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding MICROSOFT PORATION and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and MICROSOFT 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 MICROSOFT PORATION 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 MICROSOFT i.e., MICROSOFT and Jabil Circuit go up and down completely randomly.
Pair Corralation between MICROSOFT and Jabil Circuit
Assuming the 90 days trading horizon MICROSOFT PORATION is expected to generate 0.7 times more return on investment than Jabil Circuit. However, MICROSOFT PORATION is 1.43 times less risky than Jabil Circuit. It trades about 0.07 of its potential returns per unit of risk. Jabil Circuit is currently generating about -0.04 per unit of risk. If you would invest 6,640 in MICROSOFT PORATION on November 28, 2024 and sell it today you would earn a total of 77.00 from holding MICROSOFT PORATION or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MICROSOFT PORATION vs. Jabil Circuit
Performance |
| Timeline |
| MICROSOFT PORATION |
| Jabil Circuit |
MICROSOFT and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MICROSOFT and Jabil Circuit
The main advantage of trading using opposite MICROSOFT and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MICROSOFT 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.| MICROSOFT vs. Where Food Comes | MICROSOFT vs. Datadog | MICROSOFT vs. Molecular Partners AG | MICROSOFT vs. BioNTech SE |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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