Correlation Between Jabil Circuit and Bitmine Immersion

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

By analyzing existing cross correlation between Jabil Circuit and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Jabil Circuit and Bitmine Immersion 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 Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Bitmine Immersion.

Diversification Opportunities for Jabil Circuit and Bitmine Immersion

-0.68

Correlation Coefficient

Jabil Circuit  Bitmine Immersion

Excellent diversification

The 3 months correlation between Jabil and Bitmine is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion 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 Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Bitmine Immersion go up and down completely randomly.

Pair Corralation between Jabil Circuit and Bitmine Immersion

Considering the 90-day investment horizon Jabil Circuit is expected to generate 3.43 times less return on investment than Bitmine Immersion. But when comparing it to its historical volatility, Jabil Circuit is 9.32 times less risky than Bitmine Immersion. It trades about 0.21 of its potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  58.00  in Bitmine Immersion Technologies on September 3, 2024 and sell it today you would lose (21.00) from holding Bitmine Immersion Technologies or give up 36.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Jabil Circuit  vs.  Bitmine Immersion Technologies

Jabil Circuit

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jabil Circuit are ranked lower than 16 (%) 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.

Bitmine Immersion

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bitmine Immersion Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bitmine Immersion reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jabil Circuit and Bitmine Immersion

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

The idea behind Jabil Circuit and Bitmine Immersion Technologies 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.