Correlation Between Jupiter Fund and KLA
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and KLA 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 KLA 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 KLA Corporation, you can compare the effects of market volatilities on Jupiter Fund and KLA 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 KLA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and KLA.
Diversification Opportunities for Jupiter Fund and KLA
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and KLA is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and KLA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Corporation 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 KLA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Corporation has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and KLA go up and down completely randomly.
Pair Corralation between Jupiter Fund and KLA
Assuming the 90 days horizon Jupiter Fund Management is expected to generate 0.55 times more return on investment than KLA. However, Jupiter Fund Management is 1.83 times less risky than KLA. It trades about 0.04 of its potential returns per unit of risk. KLA Corporation is currently generating about -0.02 per unit of risk. If you would invest 95.00 in Jupiter Fund Management on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Jupiter Fund Management or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. KLA Corp.
Performance |
| Timeline |
| Jupiter Fund Management |
| KLA Corporation |
Jupiter Fund and KLA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and KLA
The main advantage of trading using opposite Jupiter Fund and KLA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, KLA 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 KLA will offset losses from the drop in KLA's long position.| Jupiter Fund vs. The Bank of | Jupiter Fund vs. Superior Plus Corp | Jupiter Fund vs. NMI Holdings | Jupiter Fund vs. Origin Agritech |
| KLA vs. Gaztransport Technigaz SA | KLA vs. Jupiter Fund Management | KLA vs. Transportadora de Gas | KLA vs. Sims Metal 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |