Correlation Between Bell Food and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Bell Food 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 Bell Food and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Food Group and Jupiter Fund Management, you can compare the effects of market volatilities on Bell Food 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 Bell Food with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Food and Jupiter Fund.
Diversification Opportunities for Bell Food and Jupiter Fund
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bell and Jupiter is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bell Food Group 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 Bell Food 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 Bell Food Group 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 Bell Food i.e., Bell Food and Jupiter Fund go up and down completely randomly.
Pair Corralation between Bell Food and Jupiter Fund
Assuming the 90 days trading horizon Bell Food Group is expected to generate 0.46 times more return on investment than Jupiter Fund. However, Bell Food Group is 2.16 times less risky than Jupiter Fund. It trades about 0.02 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 24,144 in Bell Food Group on October 13, 2024 and sell it today you would earn a total of 2,606 from holding Bell Food Group or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Bell Food Group vs. Jupiter Fund Management
Performance |
| Timeline |
| Bell Food Group |
| Jupiter Fund Management |
Bell Food and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Food and Jupiter Fund
The main advantage of trading using opposite Bell Food and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Food 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.| Bell Food vs. BlackRock Frontiers Investment | Bell Food vs. Capital Drilling | Bell Food vs. Primorus Investments plc | Bell Food vs. Science in Sport |
| Jupiter Fund vs. Ebro Foods | Jupiter Fund vs. Associated British Foods | Jupiter Fund vs. Tyson Foods Cl | Jupiter Fund vs. Bell Food Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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