Correlation Between Jupiter Fund and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and AGNC 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 AGNC 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 AGNC INVESTMENT, you can compare the effects of market volatilities on Jupiter Fund and AGNC 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 AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and AGNC INVESTMENT.
Diversification Opportunities for Jupiter Fund and AGNC INVESTMENT
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jupiter and AGNC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC 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 AGNC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGNC INVESTMENT has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between Jupiter Fund and AGNC INVESTMENT
Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the AGNC INVESTMENT. In addition to that, Jupiter Fund is 2.68 times more volatile than AGNC INVESTMENT. It trades about -0.08 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.2 per unit of volatility. If you would invest 883.00 in AGNC INVESTMENT on October 29, 2024 and sell it today you would earn a total of 44.00 from holding AGNC INVESTMENT or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. AGNC INVESTMENT
Performance |
| Timeline |
| Jupiter Fund Management |
| AGNC INVESTMENT |
Jupiter Fund and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and AGNC INVESTMENT
The main advantage of trading using opposite Jupiter Fund and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, AGNC 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 AGNC INVESTMENT will offset losses from the drop in AGNC INVESTMENT's long position.| Jupiter Fund vs. COSTCO WHOLESALE CDR | Jupiter Fund vs. Retail Estates NV | Jupiter Fund vs. CHAMPION IRON | Jupiter Fund vs. BJs Wholesale Club |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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