Correlation Between Jupiter Fund and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and PennantPark Investment 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 PennantPark Investment 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 PennantPark Investment, you can compare the effects of market volatilities on Jupiter Fund and PennantPark Investment 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 PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and PennantPark Investment.
Diversification Opportunities for Jupiter Fund and PennantPark Investment
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and PennantPark is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment 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 PennantPark Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Investment has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and PennantPark Investment go up and down completely randomly.
Pair Corralation between Jupiter Fund and PennantPark Investment
Assuming the 90 days horizon Jupiter Fund is expected to generate 1.57 times less return on investment than PennantPark Investment. But when comparing it to its historical volatility, Jupiter Fund Management is 1.82 times less risky than PennantPark Investment. It trades about 0.08 of its potential returns per unit of risk. PennantPark Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 639.00 in PennantPark Investment on August 30, 2024 and sell it today you would earn a total of 19.00 from holding PennantPark Investment or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. PennantPark Investment
Performance |
| Timeline |
| Jupiter Fund Management |
| PennantPark Investment |
Jupiter Fund and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and PennantPark Investment
The main advantage of trading using opposite Jupiter Fund and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, PennantPark Investment 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 PennantPark Investment will offset losses from the drop in PennantPark Investment's long position.| Jupiter Fund vs. Ribbon Communications | Jupiter Fund vs. Shenandoah Telecommunications | Jupiter Fund vs. KB HOME | Jupiter Fund vs. Zoom Video Communications |
| PennantPark Investment vs. THAI BEVERAGE | PennantPark Investment vs. LG Display Co | PennantPark Investment vs. USWE SPORTS AB | PennantPark Investment vs. NISSIN FOODS HLDGS |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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