Correlation Between Jupiter Fund and Amazon
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Amazon 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 Amazon 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 Amazon Inc, you can compare the effects of market volatilities on Jupiter Fund and Amazon 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 Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Amazon.
Diversification Opportunities for Jupiter Fund and Amazon
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Amazon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc 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 Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Amazon go up and down completely randomly.
Pair Corralation between Jupiter Fund and Amazon
Assuming the 90 days horizon Jupiter Fund Management is expected to generate 0.74 times more return on investment than Amazon. However, Jupiter Fund Management is 1.36 times less risky than Amazon. It trades about 0.33 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.2 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Amazon Inc
Performance |
| Timeline |
| Jupiter Fund Management |
| Amazon Inc |
Jupiter Fund and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Amazon
The main advantage of trading using opposite Jupiter Fund and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon'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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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