Correlation Between NOW and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both NOW 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 NOW and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NOW Inc and Jupiter Fund Management, you can compare the effects of market volatilities on NOW 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 NOW with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of NOW and Jupiter Fund.
Diversification Opportunities for NOW and Jupiter Fund
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between NOW and Jupiter is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding NOW Inc 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 NOW 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 NOW Inc 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 NOW i.e., NOW and Jupiter Fund go up and down completely randomly.
Pair Corralation between NOW and Jupiter Fund
Assuming the 90 days trading horizon NOW is expected to generate 10.18 times less return on investment than Jupiter Fund. In addition to that, NOW is 1.5 times more volatile than Jupiter Fund Management. It trades about 0.02 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.35 per unit of volatility. If you would invest 7,850 in Jupiter Fund Management on September 13, 2024 and sell it today you would earn a total of 600.00 from holding Jupiter Fund Management or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NOW Inc vs. Jupiter Fund Management
Performance |
| Timeline |
| NOW Inc |
| Jupiter Fund Management |
NOW and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NOW and Jupiter Fund
The main advantage of trading using opposite NOW and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NOW 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.| NOW vs. Supermarket Income REIT | NOW vs. Molson Coors Beverage | NOW vs. Tyson Foods Cl | NOW vs. Gruppo MutuiOnline SpA |
| Jupiter Fund vs. Catalyst Media Group | Jupiter Fund vs. Virgin Wines UK | Jupiter Fund vs. One Media iP | Jupiter Fund vs. Home Depot |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |