Correlation Between Jupiter Fund and CarsalesCom
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and CarsalesCom 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 CarsalesCom 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 CarsalesCom, you can compare the effects of market volatilities on Jupiter Fund and CarsalesCom 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 CarsalesCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and CarsalesCom.
Diversification Opportunities for Jupiter Fund and CarsalesCom
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and CarsalesCom is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and CarsalesCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarsalesCom 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 CarsalesCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarsalesCom has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and CarsalesCom go up and down completely randomly.
Pair Corralation between Jupiter Fund and CarsalesCom
Assuming the 90 days horizon Jupiter Fund is expected to generate 2.25 times less return on investment than CarsalesCom. In addition to that, Jupiter Fund is 1.64 times more volatile than CarsalesCom. It trades about 0.03 of its total potential returns per unit of risk. CarsalesCom is currently generating about 0.11 per unit of volatility. If you would invest 2,024 in CarsalesCom on September 2, 2024 and sell it today you would earn a total of 516.00 from holding CarsalesCom or generate 25.49% 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. CarsalesCom
Performance |
| Timeline |
| Jupiter Fund Management |
| CarsalesCom |
Jupiter Fund and CarsalesCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and CarsalesCom
The main advantage of trading using opposite Jupiter Fund and CarsalesCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, CarsalesCom 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 CarsalesCom will offset losses from the drop in CarsalesCom'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 |
| CarsalesCom vs. URBAN OUTFITTERS | CarsalesCom vs. AM EAGLE OUTFITTERS | CarsalesCom vs. ADRIATIC METALS LS 013355 | CarsalesCom vs. MEDICAL FACILITIES NEW |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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