Correlation Between TERADATA and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both TERADATA 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 TERADATA and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TERADATA and Jupiter Fund Management, you can compare the effects of market volatilities on TERADATA 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 TERADATA with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of TERADATA and Jupiter Fund.
Diversification Opportunities for TERADATA and Jupiter Fund
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TERADATA and Jupiter is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding TERADATA 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 TERADATA 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 TERADATA 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 TERADATA i.e., TERADATA and Jupiter Fund go up and down completely randomly.
Pair Corralation between TERADATA and Jupiter Fund
Assuming the 90 days trading horizon TERADATA is expected to under-perform the Jupiter Fund. But the stock apears to be less risky and, when comparing its historical volatility, TERADATA is 1.46 times less risky than Jupiter Fund. The stock trades about -0.04 of its potential returns per unit of risk. The Jupiter Fund Management is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Jupiter Fund Management on November 5, 2024 and sell it today you would earn a total of 8.00 from holding Jupiter Fund Management or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TERADATA vs. Jupiter Fund Management
Performance |
| Timeline |
| TERADATA |
| Jupiter Fund Management |
TERADATA and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TERADATA and Jupiter Fund
The main advantage of trading using opposite TERADATA and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TERADATA 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.| TERADATA vs. LG Display Co | TERADATA vs. Calibre Mining Corp | TERADATA vs. ALERION CLEANPOWER | TERADATA vs. USWE SPORTS AB |
| Jupiter Fund vs. Haier Smart Home | Jupiter Fund vs. Haverty Furniture Companies | Jupiter Fund vs. RYANAIR HLDGS ADR | Jupiter Fund vs. Fair Isaac Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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