Correlation Between Jupiter Fund and Wenzhou Kangning
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Wenzhou Kangning 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 Wenzhou Kangning 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 Wenzhou Kangning Hospital, you can compare the effects of market volatilities on Jupiter Fund and Wenzhou Kangning 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 Wenzhou Kangning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Wenzhou Kangning.
Diversification Opportunities for Jupiter Fund and Wenzhou Kangning
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Wenzhou is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Wenzhou Kangning Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Kangning Hospital 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 Wenzhou Kangning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Kangning Hospital has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Wenzhou Kangning go up and down completely randomly.
Pair Corralation between Jupiter Fund and Wenzhou Kangning
Assuming the 90 days horizon Jupiter Fund Management is expected to generate 1.78 times more return on investment than Wenzhou Kangning. However, Jupiter Fund is 1.78 times more volatile than Wenzhou Kangning Hospital. It trades about 0.11 of its potential returns per unit of risk. Wenzhou Kangning Hospital is currently generating about -0.24 per unit of risk. If you would invest 102.00 in Jupiter Fund Management on October 12, 2024 and sell it today you would earn a total of 5.00 from holding Jupiter Fund Management or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Wenzhou Kangning Hospital
Performance |
| Timeline |
| Jupiter Fund Management |
| Wenzhou Kangning Hospital |
Jupiter Fund and Wenzhou Kangning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Wenzhou Kangning
The main advantage of trading using opposite Jupiter Fund and Wenzhou Kangning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Wenzhou Kangning 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 Wenzhou Kangning will offset losses from the drop in Wenzhou Kangning's long position.| Jupiter Fund vs. Zoom Video Communications | Jupiter Fund vs. Firan Technology Group | Jupiter Fund vs. Casio Computer CoLtd | Jupiter Fund vs. Easy Software AG |
| Wenzhou Kangning vs. WT OFFSHORE | Wenzhou Kangning vs. Richardson Electronics | Wenzhou Kangning vs. STORE ELECTRONIC | Wenzhou Kangning vs. Eidesvik Offshore ASA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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