Correlation Between BitFuFu Warrant and Jabil Circuit

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

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

Diversification Opportunities for BitFuFu Warrant and Jabil Circuit

-0.35

Correlation Coefficient

BitFuFu Warrant  Jabil Circuit

Very good diversification

The 3 months correlation between BitFuFu and Jabil is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding BitFuFu Warrant and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and BitFuFu Warrant 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 BitFuFu Warrant 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 BitFuFu Warrant i.e., BitFuFu Warrant and Jabil Circuit go up and down completely randomly.

Pair Corralation between BitFuFu Warrant and Jabil Circuit

Assuming the 90 days horizon BitFuFu Warrant is expected to generate 3.28 times more return on investment than Jabil Circuit. However, BitFuFu Warrant is 3.28 times more volatile than Jabil Circuit. It trades about 0.01 of its potential returns per unit of risk. Jabil Circuit is currently generating about -0.01 per unit of risk. If you would invest  39.00  in BitFuFu Warrant on February 3, 2025 and sell it today you would lose (8.00) from holding BitFuFu Warrant or give up 20.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.94%
Values	Daily Returns

BitFuFu Warrant  vs.  Jabil Circuit

BitFuFu Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days BitFuFu Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, BitFuFu Warrant may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Jabil Circuit

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jabil Circuit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Jabil Circuit is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with BitFuFu Warrant and Jabil Circuit

The main advantage of trading using opposite BitFuFu Warrant and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFuFu Warrant 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.

The idea behind BitFuFu Warrant and Jabil Circuit 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.