Correlation Between CATLIN GROUP and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both CATLIN GROUP 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 CATLIN GROUP and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CATLIN GROUP and Jupiter Fund Management, you can compare the effects of market volatilities on CATLIN GROUP 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 CATLIN GROUP with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of CATLIN GROUP and Jupiter Fund.
Diversification Opportunities for CATLIN GROUP and Jupiter Fund
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CATLIN and Jupiter is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CATLIN GROUP 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 CATLIN GROUP 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 CATLIN GROUP 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 CATLIN GROUP i.e., CATLIN GROUP and Jupiter Fund go up and down completely randomly.
Pair Corralation between CATLIN GROUP and Jupiter Fund
Assuming the 90 days trading horizon CATLIN GROUP is expected to generate 0.16 times more return on investment than Jupiter Fund. However, CATLIN GROUP is 6.21 times less risky than Jupiter Fund. It trades about -0.28 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.17 per unit of risk. If you would invest 9,400 in CATLIN GROUP on October 20, 2024 and sell it today you would lose (250.00) from holding CATLIN GROUP or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CATLIN GROUP vs. Jupiter Fund Management
Performance |
| Timeline |
| CATLIN GROUP |
| Jupiter Fund Management |
CATLIN GROUP and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CATLIN GROUP and Jupiter Fund
The main advantage of trading using opposite CATLIN GROUP and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CATLIN GROUP 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.| CATLIN GROUP vs. Sartorius Stedim Biotech | CATLIN GROUP vs. Flow Traders NV | CATLIN GROUP vs. Travel Leisure Co | CATLIN GROUP vs. Raytheon Technologies Corp |
| Jupiter Fund vs. Alien Metals | Jupiter Fund vs. Electronic Arts | Jupiter Fund vs. Compal Electronics GDR | Jupiter Fund vs. Zoom Video Communications |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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