Correlation Between GAZTRTECHNIUADR1/5EO01 and Jabil

Can any of the company-specific risk be diversified away by investing in both GAZTRTECHNIUADR1/5EO01 and Jabil 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 GAZTRTECHNIUADR1/5EO01 and Jabil into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GAZTRTECHNIUADR15EO01 and Jabil Inc, you can compare the effects of market volatilities on GAZTRTECHNIUADR1/5EO01 and Jabil 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 GAZTRTECHNIUADR1/5EO01 with a short position of Jabil. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAZTRTECHNIUADR1/5EO01 and Jabil.

Diversification Opportunities for GAZTRTECHNIUADR1/5EO01 and Jabil

0.14

Correlation Coefficient

GAZTRTECHNIUADR1/5EO01  Jabil

Average diversification

The 3 months correlation between GAZTRTECHNIUADR1/5EO01 and Jabil is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GAZTRTECHNIUADR15EO01 and Jabil Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Inc and GAZTRTECHNIUADR1/5EO01 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 GAZTRTECHNIUADR15EO01 are associated (or correlated) with Jabil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jabil Inc has no effect on the direction of GAZTRTECHNIUADR1/5EO01 i.e., GAZTRTECHNIUADR1/5EO01 and Jabil go up and down completely randomly.

Pair Corralation between GAZTRTECHNIUADR1/5EO01 and Jabil

Assuming the 90 days trading horizon GAZTRTECHNIUADR15EO01 is expected to generate 0.9 times more return on investment than Jabil. However, GAZTRTECHNIUADR15EO01 is 1.11 times less risky than Jabil. It trades about 0.1 of its potential returns per unit of risk. Jabil Inc is currently generating about 0.0 per unit of risk. If you would invest  2,520  in GAZTRTECHNIUADR15EO01 on December 27, 2024 and sell it today you would earn a total of  360.00  from holding GAZTRTECHNIUADR15EO01 or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

GAZTRTECHNIUADR15EO01  vs.  Jabil Inc

GAZTRTECHNIUADR1/5EO01

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GAZTRTECHNIUADR15EO01 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, GAZTRTECHNIUADR1/5EO01 reported solid returns over the last few months and may actually be approaching a breakup point.

Jabil Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jabil Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Jabil is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GAZTRTECHNIUADR1/5EO01 and Jabil

The main advantage of trading using opposite GAZTRTECHNIUADR1/5EO01 and Jabil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAZTRTECHNIUADR1/5EO01 position performs unexpectedly, Jabil 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 will offset losses from the drop in Jabil's long position.

The idea behind GAZTRTECHNIUADR15EO01 and Jabil Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.