Correlation Between Jacobs Solutions and Space-Communication

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

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

Diversification Opportunities for Jacobs Solutions and Space-Communication

0.0

Correlation Coefficient

Jacobs Solutions  Space-Communication

Pay attention - limited upside

The 3 months correlation between Jacobs and Space-Communication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space-Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Space-Communication go up and down completely randomly.

Pair Corralation between Jacobs Solutions and Space-Communication

If you would invest  12,506  in Jacobs Solutions on May 3, 2025 and sell it today you would earn a total of  1,681  from holding Jacobs Solutions or generate 13.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Jacobs Solutions  vs.  Space Communication

Jacobs Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jacobs Solutions are ranked lower than 11 (%) 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.

Space Communication

Risk-Adjusted Performance

Very Weak

Over the last 90 days Space Communication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Space-Communication is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jacobs Solutions and Space-Communication

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

The idea behind Jacobs Solutions and Space Communication 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.