Correlation Between Jupiter Fund and YAOKO
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and YAOKO 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 YAOKO 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 YAOKO LTD, you can compare the effects of market volatilities on Jupiter Fund and YAOKO 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 YAOKO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and YAOKO.
Diversification Opportunities for Jupiter Fund and YAOKO
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jupiter and YAOKO is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and YAOKO LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YAOKO LTD 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 YAOKO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YAOKO LTD has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and YAOKO go up and down completely randomly.
Pair Corralation between Jupiter Fund and YAOKO
Assuming the 90 days horizon Jupiter Fund Management is expected to generate 0.91 times more return on investment than YAOKO. However, Jupiter Fund Management is 1.1 times less risky than YAOKO. It trades about 0.15 of its potential returns per unit of risk. YAOKO LTD is currently generating about 0.12 per unit of risk. If you would invest 95.00 in Jupiter Fund Management on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Jupiter Fund Management or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. YAOKO LTD
Performance |
| Timeline |
| Jupiter Fund Management |
| YAOKO LTD |
Jupiter Fund and YAOKO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and YAOKO
The main advantage of trading using opposite Jupiter Fund and YAOKO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, YAOKO 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 YAOKO will offset losses from the drop in YAOKO'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 |
| YAOKO vs. Perdoceo Education | YAOKO vs. LPKF Laser Electronics | YAOKO vs. Jupiter Fund Management | YAOKO vs. Methode Electronics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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