Correlation Between Jupiter Fund and TOC
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and TOC 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 TOC 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 TOC Co, you can compare the effects of market volatilities on Jupiter Fund and TOC 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 TOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and TOC.
Diversification Opportunities for Jupiter Fund and TOC
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and TOC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and TOC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOC Co 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 TOC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOC Co has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and TOC go up and down completely randomly.
Pair Corralation between Jupiter Fund and TOC
Assuming the 90 days horizon Jupiter Fund Management is expected to generate 1.18 times more return on investment than TOC. However, Jupiter Fund is 1.18 times more volatile than TOC Co. It trades about 0.03 of its potential returns per unit of risk. TOC Co is currently generating about -0.03 per unit of risk. If you would invest 85.00 in Jupiter Fund Management on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Jupiter Fund Management or generate 12.94% 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. TOC Co
Performance |
| Timeline |
| Jupiter Fund Management |
| TOC Co |
Jupiter Fund and TOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and TOC
The main advantage of trading using opposite Jupiter Fund and TOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, TOC 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 TOC will offset losses from the drop in TOC'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 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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