Correlation Between Integral and Jabil Circuit

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

By analyzing existing cross correlation between Integral Ad Science and Jabil Circuit, you can compare the effects of market volatilities on Integral 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 Integral with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Jabil Circuit.

Diversification Opportunities for Integral and Jabil Circuit

-0.56

Correlation Coefficient

Integral  Jabil Circuit

Excellent diversification

The 3 months correlation between Integral and Jabil is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Integral 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 Integral Ad Science 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 Integral i.e., Integral and Jabil Circuit go up and down completely randomly.

Pair Corralation between Integral and Jabil Circuit

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Jabil Circuit. In addition to that, Integral is 1.51 times more volatile than Jabil Circuit. It trades about -0.06 of its total potential returns per unit of risk. Jabil Circuit is currently generating about 0.3 per unit of volatility. If you would invest  12,464  in Jabil Circuit on October 25, 2024 and sell it today you would earn a total of  4,666  from holding Jabil Circuit or generate 37.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Integral Ad Science  vs.  Jabil Circuit

Integral Ad Science

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Jabil Circuit

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jabil Circuit are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating fundamental drivers, Jabil Circuit disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integral and Jabil Circuit

The main advantage of trading using opposite Integral and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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.

The idea behind Integral Ad Science and Jabil Circuit 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.