Correlation Between Jabil Circuit and Rigetti Computing

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

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

Diversification Opportunities for Jabil Circuit and Rigetti Computing

0.83

Correlation Coefficient

Jabil Circuit  Rigetti Computing

Very poor diversification

The 3 months correlation between Jabil and Rigetti is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Rigetti Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rigetti Computing 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 Rigetti Computing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rigetti Computing has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Rigetti Computing go up and down completely randomly.

Pair Corralation between Jabil Circuit and Rigetti Computing

Considering the 90-day investment horizon Jabil Circuit is expected to generate 5.8 times less return on investment than Rigetti Computing. But when comparing it to its historical volatility, Jabil Circuit is 4.2 times less risky than Rigetti Computing. It trades about 0.07 of its potential returns per unit of risk. Rigetti Computing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  90.00  in Rigetti Computing on October 13, 2024 and sell it today you would earn a total of  803.00  from holding Rigetti Computing or generate 892.22% return on investment over 90 days.

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

Jabil Circuit  vs.  Rigetti Computing

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.

Rigetti Computing

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rigetti Computing are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Rigetti Computing demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jabil Circuit and Rigetti Computing

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

The idea behind Jabil Circuit and Rigetti Computing 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.