Correlation Between Jupiter Fund and ImagineAR
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and ImagineAR 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 ImagineAR 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 ImagineAR, you can compare the effects of market volatilities on Jupiter Fund and ImagineAR 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 ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and ImagineAR.
Diversification Opportunities for Jupiter Fund and ImagineAR
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jupiter and ImagineAR is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR 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 ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and ImagineAR go up and down completely randomly.
Pair Corralation between Jupiter Fund and ImagineAR
Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the ImagineAR. But the stock apears to be less risky and, when comparing its historical volatility, Jupiter Fund Management is 4.72 times less risky than ImagineAR. The stock trades about -0.01 of its potential returns per unit of risk. The ImagineAR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2.65 in ImagineAR on October 11, 2024 and sell it today you would earn a total of 2.20 from holding ImagineAR or generate 83.02% 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. ImagineAR
Performance |
| Timeline |
| Jupiter Fund Management |
| ImagineAR |
Jupiter Fund and ImagineAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and ImagineAR
The main advantage of trading using opposite Jupiter Fund and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR's long position.| Jupiter Fund vs. Zoom Video Communications | Jupiter Fund vs. Firan Technology Group | Jupiter Fund vs. Casio Computer CoLtd | Jupiter Fund vs. Easy Software AG |
| ImagineAR vs. UNIVERSAL MUSIC GROUP | ImagineAR vs. SPARTAN STORES | ImagineAR vs. National Retail Properties | ImagineAR vs. Jupiter Fund Management |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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