Correlation Between Centaur Media and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Centaur Media 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 Centaur Media and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Jupiter Fund Management, you can compare the effects of market volatilities on Centaur Media 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 Centaur Media with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Jupiter Fund.
Diversification Opportunities for Centaur Media and Jupiter Fund
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Centaur and Jupiter is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media 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 Centaur Media 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 Centaur Media 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 Centaur Media i.e., Centaur Media and Jupiter Fund go up and down completely randomly.
Pair Corralation between Centaur Media and Jupiter Fund
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the Jupiter Fund. In addition to that, Centaur Media is 1.38 times more volatile than Jupiter Fund Management. It trades about -0.12 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.17 per unit of volatility. If you would invest 8,010 in Jupiter Fund Management on September 2, 2024 and sell it today you would earn a total of 340.00 from holding Jupiter Fund Management or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Jupiter Fund Management
Performance |
| Timeline |
| Centaur Media |
| Jupiter Fund Management |
Centaur Media and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Jupiter Fund
The main advantage of trading using opposite Centaur Media and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media 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.| Centaur Media vs. FC Investment Trust | Centaur Media vs. MoneysupermarketCom Group PLC | Centaur Media vs. Molson Coors Beverage | Centaur Media vs. CAP LEASE AVIATION |
| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. SoftBank Group Corp | Jupiter Fund vs. OTP Bank Nyrt | Jupiter Fund vs. Las Vegas Sands |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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