Correlation Between Ally Financial and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Ally Financial and Jupiter Fund 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 Ally Financial and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ally Financial and Jupiter Fund Management, you can compare the effects of market volatilities on Ally Financial and Jupiter Fund 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 Ally Financial with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ally Financial and Jupiter Fund.
Diversification Opportunities for Ally Financial and Jupiter Fund
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ally and Jupiter is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ally Financial and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and Ally Financial 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 Ally Financial are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Ally Financial i.e., Ally Financial and Jupiter Fund go up and down completely randomly.
Pair Corralation between Ally Financial and Jupiter Fund
Assuming the 90 days trading horizon Ally Financial is expected to generate 0.98 times more return on investment than Jupiter Fund. However, Ally Financial is 1.02 times less risky than Jupiter Fund. It trades about 0.06 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.03 per unit of risk. If you would invest 2,932 in Ally Financial on September 4, 2024 and sell it today you would earn a total of 969.00 from holding Ally Financial or generate 33.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ally Financial vs. Jupiter Fund Management
Performance |
| Timeline |
| Ally Financial |
| Jupiter Fund Management |
Ally Financial and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ally Financial and Jupiter Fund
The main advantage of trading using opposite Ally Financial and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ally Financial position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Ally Financial vs. Beazer Homes USA | Ally Financial vs. Systemair AB | Ally Financial vs. Pets at Home | Ally Financial vs. Ecclesiastical Insurance Office |
| Jupiter Fund vs. X FAB Silicon Foundries | Jupiter Fund vs. Cars Inc | Jupiter Fund vs. Allianz Technology Trust | Jupiter Fund vs. Primary Health Properties |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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