Correlation Between Jupiter Fund and AmerisourceBergen
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and AmerisourceBergen 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 AmerisourceBergen 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 AmerisourceBergen, you can compare the effects of market volatilities on Jupiter Fund and AmerisourceBergen 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 AmerisourceBergen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and AmerisourceBergen.
Diversification Opportunities for Jupiter Fund and AmerisourceBergen
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and AmerisourceBergen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and AmerisourceBergen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmerisourceBergen 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 AmerisourceBergen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmerisourceBergen has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and AmerisourceBergen go up and down completely randomly.
Pair Corralation between Jupiter Fund and AmerisourceBergen
Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the AmerisourceBergen. In addition to that, Jupiter Fund is 1.97 times more volatile than AmerisourceBergen. It trades about 0.0 of its total potential returns per unit of risk. AmerisourceBergen is currently generating about 0.06 per unit of volatility. If you would invest 15,544 in AmerisourceBergen on September 14, 2024 and sell it today you would earn a total of 6,271 from holding AmerisourceBergen or generate 40.34% 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. AmerisourceBergen
Performance |
| Timeline |
| Jupiter Fund Management |
| AmerisourceBergen |
Jupiter Fund and AmerisourceBergen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and AmerisourceBergen
The main advantage of trading using opposite Jupiter Fund and AmerisourceBergen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, AmerisourceBergen 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 AmerisourceBergen will offset losses from the drop in AmerisourceBergen'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 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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