Correlation Between Jabil Circuit and Kite Realty

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

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

Diversification Opportunities for Jabil Circuit and Kite Realty

0.55

Correlation Coefficient

Jabil Circuit  Kite Realty

Very weak diversification

The 3 months correlation between Jabil and Kite is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jabil Circuit and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group and Jabil Circuit 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 Circuit are associated (or correlated) with Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Jabil Circuit i.e., Jabil Circuit and Kite Realty go up and down completely randomly.

Pair Corralation between Jabil Circuit and Kite Realty

Considering the 90-day investment horizon Jabil Circuit is expected to generate 1.32 times more return on investment than Kite Realty. However, Jabil Circuit is 1.32 times more volatile than Kite Realty Group. It trades about 0.33 of its potential returns per unit of risk. Kite Realty Group is currently generating about -0.01 per unit of risk. If you would invest  15,265  in Jabil Circuit on May 7, 2025 and sell it today you would earn a total of  6,964  from holding Jabil Circuit or generate 45.62% return on investment over 90 days.

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

Jabil Circuit  vs.  Kite Realty Group

Jabil Circuit

Risk-Adjusted Performance

Solid

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

Kite Realty Group

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Jabil Circuit and Kite Realty

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

The idea behind Jabil Circuit and Kite Realty Group 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.