Correlation Between Jabil Circuit and ANTA Sports

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

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

Diversification Opportunities for Jabil Circuit and ANTA Sports

-0.3

Correlation Coefficient

Jabil Circuit  ANTA Sports

Very good diversification

The 3 months correlation between Jabil and ANTA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products and Jabil Circuit 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 Circuit are associated (or correlated) with ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and ANTA Sports go up and down completely randomly.

Pair Corralation between Jabil Circuit and ANTA Sports

Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.58 times more return on investment than ANTA Sports. However, Jabil Circuit is 1.71 times less risky than ANTA Sports. It trades about 0.21 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.09 per unit of risk. If you would invest  13,400  in Jabil Circuit on September 24, 2024 and sell it today you would earn a total of  1,100  from holding Jabil Circuit or generate 8.21% return on investment over 90 days.

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

Jabil Circuit  vs.  ANTA Sports Products

Jabil Circuit

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jabil Circuit are ranked lower than 14 (%) 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.

ANTA Sports Products

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, ANTA Sports is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jabil Circuit and ANTA Sports

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

The idea behind Jabil Circuit and ANTA Sports Products 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.