Correlation Between Kinnevik Investment and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment 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 Kinnevik Investment and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Jupiter Fund Management, you can compare the effects of market volatilities on Kinnevik Investment 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 Kinnevik Investment with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Jupiter Fund.
Diversification Opportunities for Kinnevik Investment and Jupiter Fund
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinnevik and Jupiter is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB 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 Kinnevik Investment 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 Kinnevik Investment AB 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 Kinnevik Investment i.e., Kinnevik Investment and Jupiter Fund go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Jupiter Fund
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Jupiter Fund. In addition to that, Kinnevik Investment is 1.53 times more volatile than Jupiter Fund Management. It trades about -0.04 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.09 per unit of volatility. If you would invest 8,140 in Jupiter Fund Management on August 27, 2024 and sell it today you would earn a total of 180.00 from holding Jupiter Fund Management or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Jupiter Fund Management
Performance |
| Timeline |
| Kinnevik Investment |
| Jupiter Fund Management |
Kinnevik Investment and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Jupiter Fund
The main advantage of trading using opposite Kinnevik Investment and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment 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.| Kinnevik Investment vs. Samsung Electronics Co | Kinnevik Investment vs. Samsung Electronics Co | Kinnevik Investment vs. Hyundai Motor | Kinnevik Investment vs. Toyota Motor Corp |
| Jupiter Fund vs. Empire Metals Limited | Jupiter Fund vs. European Metals Holdings | Jupiter Fund vs. Adriatic Metals | Jupiter Fund vs. Cairo Communication SpA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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