Correlation Between Automatic Data and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Automatic Data 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 Automatic Data and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Data Processing and Jupiter Fund Management, you can compare the effects of market volatilities on Automatic Data 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 Automatic Data with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Data and Jupiter Fund.
Diversification Opportunities for Automatic Data and Jupiter Fund
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Automatic and Jupiter is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Data Processing 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 Automatic Data 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 Automatic Data Processing 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 Automatic Data i.e., Automatic Data and Jupiter Fund go up and down completely randomly.
Pair Corralation between Automatic Data and Jupiter Fund
Assuming the 90 days trading horizon Automatic Data Processing is expected to generate 0.5 times more return on investment than Jupiter Fund. However, Automatic Data Processing is 2.01 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 -0.02 per unit of risk. If you would invest 28,800 in Automatic Data Processing on October 24, 2024 and sell it today you would earn a total of 992.00 from holding Automatic Data Processing or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Automatic Data Processing vs. Jupiter Fund Management
Performance |
| Timeline |
| Automatic Data Processing |
| Jupiter Fund Management |
Automatic Data and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Data and Jupiter Fund
The main advantage of trading using opposite Automatic Data and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Data 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.| Automatic Data vs. Wheaton Precious Metals | Automatic Data vs. Molson Coors Beverage | Automatic Data vs. Monster Beverage Corp | Automatic Data vs. URU Metals |
| Jupiter Fund vs. Universal Music Group | Jupiter Fund vs. Fevertree Drinks Plc | Jupiter Fund vs. Sydbank | Jupiter Fund vs. Electronic Arts |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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