Correlation Between Federal Agricultural and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Federal Agricultural and Jupiter Fund 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 Federal Agricultural and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Agricultural Mortgage and Jupiter Fund Management, you can compare the effects of market volatilities on Federal Agricultural and Jupiter Fund 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 Federal Agricultural with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Agricultural and Jupiter Fund.
Diversification Opportunities for Federal Agricultural and Jupiter Fund
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federal and Jupiter is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Federal Agricultural Mortgage and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and Federal Agricultural 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 Federal Agricultural Mortgage are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Federal Agricultural i.e., Federal Agricultural and Jupiter Fund go up and down completely randomly.
Pair Corralation between Federal Agricultural and Jupiter Fund
Assuming the 90 days horizon Federal Agricultural Mortgage is expected to generate 0.78 times more return on investment than Jupiter Fund. However, Federal Agricultural Mortgage is 1.28 times less risky than Jupiter Fund. It trades about 0.07 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.05 per unit of risk. If you would invest 16,247 in Federal Agricultural Mortgage on September 25, 2024 and sell it today you would earn a total of 2,853 from holding Federal Agricultural Mortgage or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Agricultural Mortgage vs. Jupiter Fund Management
Performance |
| Timeline |
| Federal Agricultural |
| Jupiter Fund Management |
Federal Agricultural and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Agricultural and Jupiter Fund
The main advantage of trading using opposite Federal Agricultural and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Agricultural position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Federal Agricultural vs. Vastned Retail NV | Federal Agricultural vs. Zoom Video Communications | Federal Agricultural vs. SUN ART RETAIL | Federal Agricultural vs. ECHO INVESTMENT ZY |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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