Correlation Between Jupiter Fund and WPP SP
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and WPP SP 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 Jupiter Fund and WPP SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Fund Management and WPP SP ADR, you can compare the effects of market volatilities on Jupiter Fund and WPP SP 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 Jupiter Fund with a short position of WPP SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and WPP SP.
Diversification Opportunities for Jupiter Fund and WPP SP
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and WPP is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and WPP SP ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WPP SP ADR and Jupiter Fund 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 Jupiter Fund Management are associated (or correlated) with WPP SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WPP SP ADR has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and WPP SP go up and down completely randomly.
Pair Corralation between Jupiter Fund and WPP SP
Assuming the 90 days horizon Jupiter Fund is expected to generate 1.96 times less return on investment than WPP SP. In addition to that, Jupiter Fund is 1.65 times more volatile than WPP SP ADR. It trades about 0.09 of its total potential returns per unit of risk. WPP SP ADR is currently generating about 0.29 per unit of volatility. If you would invest 4,270 in WPP SP ADR on September 12, 2024 and sell it today you would earn a total of 930.00 from holding WPP SP ADR or generate 21.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Jupiter Fund Management vs. WPP SP ADR
Performance |
| Timeline |
| Jupiter Fund Management |
| WPP SP ADR |
Jupiter Fund and WPP SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and WPP SP
The main advantage of trading using opposite Jupiter Fund and WPP SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, WPP SP 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 WPP SP will offset losses from the drop in WPP SP's long position.| Jupiter Fund vs. Ameriprise Financial | Jupiter Fund vs. Ares Management Corp | Jupiter Fund vs. Superior Plus Corp | Jupiter Fund vs. SIVERS SEMICONDUCTORS AB |
| WPP SP vs. LANDSEA GREEN MANAGEMENT | WPP SP vs. Corporate Travel Management | WPP SP vs. Jupiter Fund Management | WPP SP vs. CARSALESCOM |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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