Correlation Between Jabil Circuit and Coda Octopus
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Coda Octopus 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 Coda Octopus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Coda Octopus Group, you can compare the effects of market volatilities on Jabil Circuit and Coda Octopus 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 Coda Octopus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Coda Octopus.
Diversification Opportunities for Jabil Circuit and Coda Octopus
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jabil and Coda is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Coda Octopus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coda Octopus Group 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 Coda Octopus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coda Octopus Group has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Coda Octopus go up and down completely randomly.
Pair Corralation between Jabil Circuit and Coda Octopus
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.89 times more return on investment than Coda Octopus. However, Jabil Circuit is 1.12 times less risky than Coda Octopus. It trades about 0.06 of its potential returns per unit of risk. Coda Octopus Group is currently generating about 0.03 per unit of risk. If you would invest 7,989 in Jabil Circuit on December 4, 2024 and sell it today you would earn a total of 6,656 from holding Jabil Circuit or generate 83.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jabil Circuit vs. Coda Octopus Group
Performance |
Timeline |
Jabil Circuit |
Coda Octopus Group |
Jabil Circuit and Coda Octopus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jabil Circuit and Coda Octopus
The main advantage of trading using opposite Jabil Circuit and Coda Octopus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Coda Octopus 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 Coda Octopus will offset losses from the drop in Coda Octopus' long position.Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
Coda Octopus vs. Ducommun Incorporated | Coda Octopus vs. Park Electrochemical | Coda Octopus vs. National Presto Industries | Coda Octopus vs. Astronics |
Check out your portfolio center.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |