Correlation Between Jacobs Solutions and Energys Group

Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and Energys Group 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 Solutions and Energys Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jacobs Solutions and Energys Group Limited, you can compare the effects of market volatilities on Jacobs Solutions and Energys Group 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 Solutions with a short position of Energys Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Energys Group.

Diversification Opportunities for Jacobs Solutions and Energys Group

-0.29

Correlation Coefficient

Jacobs Solutions  Energys Group

Very good diversification

The 3 months correlation between Jacobs and Energys is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Energys Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energys Group Limited and Jacobs Solutions 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 Solutions are associated (or correlated) with Energys Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energys Group Limited has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Energys Group go up and down completely randomly.

Pair Corralation between Jacobs Solutions and Energys Group

Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 2.36 times less return on investment than Energys Group. But when comparing it to its historical volatility, Jacobs Solutions is 6.89 times less risky than Energys Group. It trades about 0.22 of its potential returns per unit of risk. Energys Group Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  262.00  in Energys Group Limited on May 6, 2025 and sell it today you would earn a total of  49.00  from holding Energys Group Limited or generate 18.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jacobs Solutions  vs.  Energys Group Limited

Jacobs Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jacobs Solutions are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Jacobs Solutions revealed solid returns over the last few months and may actually be approaching a breakup point.

Energys Group Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Energys Group Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, Energys Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jacobs Solutions and Energys Group

The main advantage of trading using opposite Jacobs Solutions and Energys Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, Energys Group 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 Energys Group will offset losses from the drop in Energys Group's long position.

The idea behind Jacobs Solutions and Energys Group Limited 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 Global Correlations module to find global opportunities by holding instruments from different markets.