Correlation Between Jupiter Fund and WHIRLPOOL
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and WHIRLPOOL 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 WHIRLPOOL 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 WHIRLPOOL, you can compare the effects of market volatilities on Jupiter Fund and WHIRLPOOL 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 WHIRLPOOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and WHIRLPOOL.
Diversification Opportunities for Jupiter Fund and WHIRLPOOL
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and WHIRLPOOL is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and WHIRLPOOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHIRLPOOL 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 WHIRLPOOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHIRLPOOL has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and WHIRLPOOL go up and down completely randomly.
Pair Corralation between Jupiter Fund and WHIRLPOOL
Assuming the 90 days horizon Jupiter Fund is expected to generate 1.95 times less return on investment than WHIRLPOOL. But when comparing it to its historical volatility, Jupiter Fund Management is 1.7 times less risky than WHIRLPOOL. It trades about 0.24 of its potential returns per unit of risk. WHIRLPOOL is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 9,368 in WHIRLPOOL on September 2, 2024 and sell it today you would earn a total of 1,182 from holding WHIRLPOOL or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. WHIRLPOOL
Performance |
| Timeline |
| Jupiter Fund Management |
| WHIRLPOOL |
Jupiter Fund and WHIRLPOOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and WHIRLPOOL
The main advantage of trading using opposite Jupiter Fund and WHIRLPOOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, WHIRLPOOL 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 WHIRLPOOL will offset losses from the drop in WHIRLPOOL's long position.| Jupiter Fund vs. Ameriprise Financial | Jupiter Fund vs. Ares Management Corp | Jupiter Fund vs. Superior Plus Corp | Jupiter Fund vs. NMI Holdings |
| WHIRLPOOL vs. Perseus Mining Limited | WHIRLPOOL vs. Q2M Managementberatung AG | WHIRLPOOL vs. SBM OFFSHORE | WHIRLPOOL vs. Jupiter Fund 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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