Correlation Between Jupiter Fund and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Electronic Arts 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 Electronic Arts 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 Electronic Arts, you can compare the effects of market volatilities on Jupiter Fund and Electronic Arts 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 Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Electronic Arts.
Diversification Opportunities for Jupiter Fund and Electronic Arts
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jupiter and Electronic is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts 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 Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Electronic Arts go up and down completely randomly.
Pair Corralation between Jupiter Fund and Electronic Arts
Assuming the 90 days horizon Jupiter Fund is expected to generate 14.48 times less return on investment than Electronic Arts. In addition to that, Jupiter Fund is 1.2 times more volatile than Electronic Arts. It trades about 0.04 of its total potential returns per unit of risk. Electronic Arts is currently generating about 0.76 per unit of volatility. If you would invest 13,326 in Electronic Arts on August 27, 2024 and sell it today you would earn a total of 2,550 from holding Electronic Arts or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Electronic Arts
Performance |
| Timeline |
| Jupiter Fund Management |
| Electronic Arts |
Jupiter Fund and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Electronic Arts
The main advantage of trading using opposite Jupiter Fund and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| Jupiter Fund vs. New Residential Investment | Jupiter Fund vs. 24SEVENOFFICE GROUP AB | Jupiter Fund vs. Siamgas And Petrochemicals | Jupiter Fund vs. LGI Homes |
| Electronic Arts vs. Apple Inc | Electronic Arts vs. Apple Inc | Electronic Arts vs. Apple Inc | Electronic Arts vs. Microsoft |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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