Correlation Between Jupiter Fund and Regions Financial
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Regions Financial 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 Regions Financial 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 Regions Financial, you can compare the effects of market volatilities on Jupiter Fund and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Regions Financial.
Diversification Opportunities for Jupiter Fund and Regions Financial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Regions is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Regions Financial go up and down completely randomly.
Pair Corralation between Jupiter Fund and Regions Financial
Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the Regions Financial. In addition to that, Jupiter Fund is 1.11 times more volatile than Regions Financial. It trades about -0.01 of its total potential returns per unit of risk. Regions Financial is currently generating about 0.21 per unit of volatility. If you would invest 2,035 in Regions Financial on August 29, 2024 and sell it today you would earn a total of 565.00 from holding Regions Financial or generate 27.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Regions Financial
Performance |
| Timeline |
| Jupiter Fund Management |
| Regions Financial |
Jupiter Fund and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Regions Financial
The main advantage of trading using opposite Jupiter Fund and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| Jupiter Fund vs. Superior Plus Corp | Jupiter Fund vs. NMI Holdings | Jupiter Fund vs. Origin Agritech | Jupiter Fund vs. SIVERS SEMICONDUCTORS AB |
| Regions Financial vs. Mitsui Chemicals | Regions Financial vs. SIDETRADE EO 1 | Regions Financial vs. Globe Trade Centre | Regions Financial vs. Vastned Retail NV |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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