Correlation Between Jupiter Fund and ALEFARM BREWING
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and ALEFARM BREWING 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 ALEFARM BREWING 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 ALEFARM BREWING DK 05, you can compare the effects of market volatilities on Jupiter Fund and ALEFARM BREWING 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 ALEFARM BREWING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and ALEFARM BREWING.
Diversification Opportunities for Jupiter Fund and ALEFARM BREWING
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jupiter and ALEFARM is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and ALEFARM BREWING DK 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEFARM BREWING DK 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 ALEFARM BREWING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEFARM BREWING DK has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and ALEFARM BREWING go up and down completely randomly.
Pair Corralation between Jupiter Fund and ALEFARM BREWING
Assuming the 90 days horizon Jupiter Fund Management is expected to generate 0.34 times more return on investment than ALEFARM BREWING. However, Jupiter Fund Management is 2.98 times less risky than ALEFARM BREWING. It trades about 0.33 of its potential returns per unit of risk. ALEFARM BREWING DK 05 is currently generating about -0.25 per unit of risk. If you would invest 93.00 in Jupiter Fund Management on September 14, 2024 and sell it today you would earn a total of 9.00 from holding Jupiter Fund Management or generate 9.68% 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. ALEFARM BREWING DK 05
Performance |
| Timeline |
| Jupiter Fund Management |
| ALEFARM BREWING DK |
Jupiter Fund and ALEFARM BREWING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and ALEFARM BREWING
The main advantage of trading using opposite Jupiter Fund and ALEFARM BREWING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, ALEFARM BREWING 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 ALEFARM BREWING will offset losses from the drop in ALEFARM BREWING's long position.| Jupiter Fund vs. National Health Investors | Jupiter Fund vs. New Residential Investment | Jupiter Fund vs. WisdomTree Investments | Jupiter Fund vs. CDL INVESTMENT |
| ALEFARM BREWING vs. MOLSON RS BEVERAGE | ALEFARM BREWING vs. Superior Plus Corp | ALEFARM BREWING vs. SIVERS SEMICONDUCTORS AB | ALEFARM BREWING vs. NorAm Drilling AS |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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