Correlation Between Jupiter Fund and NH Foods
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and NH Foods 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 NH Foods 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 NH Foods, you can compare the effects of market volatilities on Jupiter Fund and NH Foods 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 NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and NH Foods.
Diversification Opportunities for Jupiter Fund and NH Foods
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and NI6 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and NH Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods 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 NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and NH Foods go up and down completely randomly.
Pair Corralation between Jupiter Fund and NH Foods
Assuming the 90 days horizon Jupiter Fund Management is expected to generate 1.75 times more return on investment than NH Foods. However, Jupiter Fund is 1.75 times more volatile than NH Foods. It trades about -0.09 of its potential returns per unit of risk. NH Foods is currently generating about -0.19 per unit of risk. If you would invest 106.00 in Jupiter Fund Management on November 7, 2024 and sell it today you would lose (9.00) from holding Jupiter Fund Management or give up 8.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. NH Foods
Performance |
| Timeline |
| Jupiter Fund Management |
| NH Foods |
Jupiter Fund and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and NH Foods
The main advantage of trading using opposite Jupiter Fund and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| Jupiter Fund vs. Keck Seng Investments | Jupiter Fund vs. JLF INVESTMENT | Jupiter Fund vs. DIVERSIFIED ROYALTY | Jupiter Fund vs. MGIC INVESTMENT |
| NH Foods vs. T Mobile | NH Foods vs. Air Lease | NH Foods vs. ecotel communication ag | NH Foods vs. MAVEN WIRELESS SWEDEN |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |