Correlation Between Jabil and Meiko Electronics
Can any of the company-specific risk be diversified away by investing in both Jabil and Meiko 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 and Meiko Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jabil Inc and Meiko Electronics Co, you can compare the effects of market volatilities on Jabil and Meiko 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 with a short position of Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jabil and Meiko Electronics.
Diversification Opportunities for Jabil and Meiko Electronics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jabil and Meiko is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Inc and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics and Jabil 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 Inc are associated (or correlated) with Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of Jabil i.e., Jabil and Meiko Electronics go up and down completely randomly.
Pair Corralation between Jabil and Meiko Electronics
Assuming the 90 days horizon Jabil Inc is expected to generate 0.96 times more return on investment than Meiko Electronics. However, Jabil Inc is 1.04 times less risky than Meiko Electronics. It trades about 0.28 of its potential returns per unit of risk. Meiko Electronics Co is currently generating about 0.08 per unit of risk. If you would invest 12,484 in Jabil Inc on April 23, 2025 and sell it today you would earn a total of 6,741 from holding Jabil Inc or generate 54.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jabil Inc vs. Meiko Electronics Co
Performance |
Timeline |
Jabil Inc |
Meiko Electronics |
Jabil and Meiko Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jabil and Meiko Electronics
The main advantage of trading using opposite Jabil and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jabil position performs unexpectedly, Meiko 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' long position.Jabil vs. Ibiden CoLtd | Jabil vs. Plexus Corp | Jabil vs. KCE EL PCL | Jabil vs. Hana Microelectronics Public |
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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 Positions Ratings module to 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.
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