Correlation Between Jacobs Engineering and Aecom Technology
Can any of the company-specific risk be diversified away by investing in both Jacobs Engineering and Aecom Technology 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 Jacobs Engineering and Aecom Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Engineering Group and Aecom Technology, you can compare the effects of market volatilities on Jacobs Engineering and Aecom Technology 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 Jacobs Engineering with a short position of Aecom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Engineering and Aecom Technology.
Diversification Opportunities for Jacobs Engineering and Aecom Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jacobs and Aecom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Engineering Group and Aecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecom Technology and Jacobs Engineering 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 Jacobs Engineering Group are associated (or correlated) with Aecom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecom Technology has no effect on the direction of Jacobs Engineering i.e., Jacobs Engineering and Aecom Technology go up and down completely randomly.
Pair Corralation between Jacobs Engineering and Aecom Technology
If you would invest 8,658 in Aecom Technology on January 24, 2024 and sell it today you would earn a total of 677.00 from holding Aecom Technology or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Jacobs Engineering Group vs. Aecom Technology
Performance |
| Timeline |
| Jacobs Engineering |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aecom Technology |
Jacobs Engineering and Aecom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Engineering and Aecom Technology
The main advantage of trading using opposite Jacobs Engineering and Aecom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Engineering position performs unexpectedly, Aecom Technology 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 Aecom Technology will offset losses from the drop in Aecom Technology's long position.| Jacobs Engineering vs. Flex | Jacobs Engineering vs. Coupang LLC | Jacobs Engineering vs. Playtika Holding Corp | Jacobs Engineering vs. Blue Hat Interactive |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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