Correlation Between Jabil Circuit and Methode Electronics
Can any of the company-specific risk be diversified away by investing in both Jabil Circuit and Methode Electronics 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 Methode Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Circuit and Methode Electronics, you can compare the effects of market volatilities on Jabil Circuit and Methode Electronics 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 Methode Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil Circuit and Methode Electronics.
Diversification Opportunities for Jabil Circuit and Methode Electronics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jabil and Methode is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Methode Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Methode Electronics 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 Methode Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Methode Electronics has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Methode Electronics go up and down completely randomly.
Pair Corralation between Jabil Circuit and Methode Electronics
Considering the 90-day investment horizon Jabil Circuit is expected to generate 0.46 times more return on investment than Methode Electronics. However, Jabil Circuit is 2.15 times less risky than Methode Electronics. It trades about 0.17 of its potential returns per unit of risk. Methode Electronics is currently generating about 0.02 per unit of risk. If you would invest 16,849 in Jabil Circuit on May 29, 2025 and sell it today you would earn a total of 3,943 from holding Jabil Circuit or generate 23.4% 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. Methode Electronics
Performance |
| Timeline |
| Jabil Circuit |
| Methode Electronics |
Jabil Circuit and Methode Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jabil Circuit and Methode Electronics
The main advantage of trading using opposite Jabil Circuit and Methode Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil Circuit position performs unexpectedly, Methode Electronics 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 Methode Electronics will offset losses from the drop in Methode Electronics' long position.| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
| Methode Electronics vs. Sanmina | Methode Electronics vs. Benchmark Electronics | Methode Electronics vs. OSI Systems | Methode Electronics vs. Celestica |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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