Correlation Between Jupiter Fund and Yum China
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Yum China 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 Yum China 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 Yum China Holdings, you can compare the effects of market volatilities on Jupiter Fund and Yum China 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 Yum China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Yum China.
Diversification Opportunities for Jupiter Fund and Yum China
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jupiter and Yum is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Yum China Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum China Holdings 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 Yum China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum China Holdings has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Yum China go up and down completely randomly.
Pair Corralation between Jupiter Fund and Yum China
Assuming the 90 days horizon Jupiter Fund is expected to generate 1.5 times less return on investment than Yum China. But when comparing it to its historical volatility, Jupiter Fund Management is 2.2 times less risky than Yum China. It trades about 0.15 of its potential returns per unit of risk. Yum China Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,079 in Yum China Holdings on August 31, 2024 and sell it today you would earn a total of 247.00 from holding Yum China Holdings or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jupiter Fund Management vs. Yum China Holdings
Performance |
| Timeline |
| Jupiter Fund Management |
| Yum China Holdings |
Jupiter Fund and Yum China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Yum China
The main advantage of trading using opposite Jupiter Fund and Yum China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Yum China 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 Yum China will offset losses from the drop in Yum China's long position.| Jupiter Fund vs. Ameriprise Financial | Jupiter Fund vs. Ares Management Corp | Jupiter Fund vs. Superior Plus Corp | Jupiter Fund vs. NMI Holdings |
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.
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