Correlation Between Wicket Gaming and Jacobs Solutions
Can any of the company-specific risk be diversified away by investing in both Wicket Gaming and Jacobs Solutions 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 Wicket Gaming and Jacobs Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wicket Gaming AB and Jacobs Solutions, you can compare the effects of market volatilities on Wicket Gaming 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 Wicket Gaming with a short position of Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicket Gaming and Jacobs Solutions.
Diversification Opportunities for Wicket Gaming and Jacobs Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wicket and Jacobs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicket Gaming AB and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions and Wicket Gaming 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 Wicket Gaming AB 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 Wicket Gaming i.e., Wicket Gaming and Jacobs Solutions go up and down completely randomly.
Pair Corralation between Wicket Gaming and Jacobs Solutions
Assuming the 90 days horizon Wicket Gaming AB is expected to under-perform the Jacobs Solutions. In addition to that, Wicket Gaming is 3.31 times more volatile than Jacobs Solutions. It trades about -0.06 of its total potential returns per unit of risk. Jacobs Solutions is currently generating about 0.08 per unit of volatility. If you would invest 9,616 in Jacobs Solutions on August 31, 2024 and sell it today you would earn a total of 4,507 from holding Jacobs Solutions or generate 46.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.33% |
| Values | Daily Returns |
Wicket Gaming AB vs. Jacobs Solutions
Performance |
| Timeline |
| Wicket Gaming AB |
| Jacobs Solutions |
Wicket Gaming and Jacobs Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wicket Gaming and Jacobs Solutions
The main advantage of trading using opposite Wicket Gaming and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wicket Gaming 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.| Wicket Gaming vs. CD Projekt SA | Wicket Gaming vs. Sega Sammy Holdings | Wicket Gaming vs. Playtika Holding Corp | Wicket Gaming vs. Square Enix Holdings |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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