Correlation Between Jacobs Solutions and Oshkosh

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

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

Diversification Opportunities for Jacobs Solutions and Oshkosh

0.91

Correlation Coefficient

Jacobs Solutions  Oshkosh

Almost no diversification

The 3 months correlation between Jacobs and Oshkosh is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Oshkosh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshkosh 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 Oshkosh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshkosh has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Oshkosh go up and down completely randomly.

Pair Corralation between Jacobs Solutions and Oshkosh

Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 3.49 times less return on investment than Oshkosh. But when comparing it to its historical volatility, Jacobs Solutions is 1.32 times less risky than Oshkosh. It trades about 0.12 of its potential returns per unit of risk. Oshkosh is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  8,915  in Oshkosh on May 5, 2025 and sell it today you would earn a total of  4,139  from holding Oshkosh or generate 46.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Jacobs Solutions  vs.  Oshkosh

Jacobs Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jacobs Solutions are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Jacobs Solutions may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Oshkosh

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oshkosh are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Oshkosh disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jacobs Solutions and Oshkosh

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

The idea behind Jacobs Solutions and Oshkosh 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.