Correlation Between Jupiter Fund and MGIC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and MGIC INVESTMENT 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 MGIC INVESTMENT 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 MGIC INVESTMENT, you can compare the effects of market volatilities on Jupiter Fund and MGIC INVESTMENT 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 MGIC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and MGIC INVESTMENT.
Diversification Opportunities for Jupiter Fund and MGIC INVESTMENT
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jupiter and MGIC is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and MGIC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGIC INVESTMENT 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 MGIC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGIC INVESTMENT has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and MGIC INVESTMENT go up and down completely randomly.
Pair Corralation between Jupiter Fund and MGIC INVESTMENT
Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the MGIC INVESTMENT. In addition to that, Jupiter Fund is 3.84 times more volatile than MGIC INVESTMENT. It trades about -0.08 of its total potential returns per unit of risk. MGIC INVESTMENT is currently generating about 0.21 per unit of volatility. If you would invest 2,280 in MGIC INVESTMENT on October 29, 2024 and sell it today you would earn a total of 80.00 from holding MGIC INVESTMENT or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. MGIC INVESTMENT
Performance |
| Timeline |
| Jupiter Fund Management |
| MGIC INVESTMENT |
Jupiter Fund and MGIC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and MGIC INVESTMENT
The main advantage of trading using opposite Jupiter Fund and MGIC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, MGIC INVESTMENT 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 MGIC INVESTMENT will offset losses from the drop in MGIC INVESTMENT's long position.| Jupiter Fund vs. COSTCO WHOLESALE CDR | Jupiter Fund vs. Retail Estates NV | Jupiter Fund vs. CHAMPION IRON | Jupiter Fund vs. BJs Wholesale Club |
| MGIC INVESTMENT vs. Synovus Financial Corp | MGIC INVESTMENT vs. MAGNUM MINING EXP | MGIC INVESTMENT vs. SUN LIFE FINANCIAL | MGIC INVESTMENT vs. MAG SILVER |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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