Correlation Between Lloyds Banking and JABIL CIRCUIT
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and JABIL CIRCUIT 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 Lloyds Banking and JABIL CIRCUIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and JABIL CIRCUIT, you can compare the effects of market volatilities on Lloyds Banking and JABIL CIRCUIT 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 Lloyds Banking with a short position of JABIL CIRCUIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and JABIL CIRCUIT.
Diversification Opportunities for Lloyds Banking and JABIL CIRCUIT
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lloyds and JABIL is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and JABIL CIRCUIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JABIL CIRCUIT and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with JABIL CIRCUIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JABIL CIRCUIT has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and JABIL CIRCUIT go up and down completely randomly.
Pair Corralation between Lloyds Banking and JABIL CIRCUIT
Assuming the 90 days trading horizon Lloyds Banking Group is expected to under-perform the JABIL CIRCUIT. In addition to that, Lloyds Banking is 1.5 times more volatile than JABIL CIRCUIT. It trades about -0.02 of its total potential returns per unit of risk. JABIL CIRCUIT is currently generating about 0.24 per unit of volatility. If you would invest 12,110 in JABIL CIRCUIT on September 17, 2024 and sell it today you would earn a total of 605.00 from holding JABIL CIRCUIT or generate 5.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lloyds Banking Group vs. JABIL CIRCUIT
Performance |
Timeline |
Lloyds Banking Group |
JABIL CIRCUIT |
Lloyds Banking and JABIL CIRCUIT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lloyds Banking and JABIL CIRCUIT
The main advantage of trading using opposite Lloyds Banking and JABIL CIRCUIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, JABIL CIRCUIT 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 JABIL CIRCUIT will offset losses from the drop in JABIL CIRCUIT's long position.Lloyds Banking vs. Zijin Mining Group | Lloyds Banking vs. Tradegate AG Wertpapierhandelsbank | Lloyds Banking vs. GREENX METALS LTD | Lloyds Banking vs. DISTRICT METALS |
JABIL CIRCUIT vs. SANOK RUBBER ZY | JABIL CIRCUIT vs. United Airlines Holdings | JABIL CIRCUIT vs. Southwest Airlines Co | JABIL CIRCUIT vs. AEGEAN AIRLINES |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |