Correlation Between Jabil and GAZTRTECHNIUADR15EO01

Can any of the company-specific risk be diversified away by investing in both Jabil and GAZTRTECHNIUADR15EO01 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 Jabil and GAZTRTECHNIUADR15EO01 into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Jabil and GAZTRTECHNIUADR15EO01

-0.05

Correlation Coefficient

Jabil  GAZTRTECHNIUADR15EO01

Good diversification

The 3 months correlation between Jabil and GAZTRTECHNIUADR15EO01 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Inc and GAZTRTECHNIUADR15EO01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAZTRTECHNIUADR15EO01 and Jabil 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 Jabil Inc are associated (or correlated) with GAZTRTECHNIUADR15EO01. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAZTRTECHNIUADR15EO01 has no effect on the direction of Jabil i.e., Jabil and GAZTRTECHNIUADR15EO01 go up and down completely randomly.

Pair Corralation between Jabil and GAZTRTECHNIUADR15EO01

Assuming the 90 days horizon Jabil Inc is expected to generate 1.41 times more return on investment than GAZTRTECHNIUADR15EO01. However, Jabil is 1.41 times more volatile than GAZTRTECHNIUADR15EO01. It trades about 0.18 of its potential returns per unit of risk. GAZTRTECHNIUADR15EO01 is currently generating about 0.07 per unit of risk. If you would invest  12,622  in Jabil Inc on October 7, 2024 and sell it today you would earn a total of  1,993  from holding Jabil Inc or generate 15.79% return on investment over 90 days.

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

Jabil Inc  vs.  GAZTRTECHNIUADR15EO01

Jabil Inc

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jabil Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jabil reported solid returns over the last few months and may actually be approaching a breakup point.

GAZTRTECHNIUADR15EO01

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GAZTRTECHNIUADR15EO01 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, GAZTRTECHNIUADR15EO01 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Jabil and GAZTRTECHNIUADR15EO01

The main advantage of trading using opposite Jabil and GAZTRTECHNIUADR15EO01 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil position performs unexpectedly, GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 will offset losses from the drop in GAZTRTECHNIUADR15EO01's long position.

The idea behind Jabil Inc and GAZTRTECHNIUADR15EO01 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.