Correlation Between CosmoSteel Holdings and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both CosmoSteel Holdings 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 CosmoSteel Holdings and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CosmoSteel Holdings Limited and Jupiter Fund Management, you can compare the effects of market volatilities on CosmoSteel Holdings 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 CosmoSteel Holdings with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of CosmoSteel Holdings and Jupiter Fund.
Diversification Opportunities for CosmoSteel Holdings and Jupiter Fund
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CosmoSteel and Jupiter is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CosmoSteel Holdings Limited 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 CosmoSteel Holdings 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 CosmoSteel Holdings Limited 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 CosmoSteel Holdings i.e., CosmoSteel Holdings and Jupiter Fund go up and down completely randomly.
Pair Corralation between CosmoSteel Holdings and Jupiter Fund
Assuming the 90 days horizon CosmoSteel Holdings Limited is expected to under-perform the Jupiter Fund. In addition to that, CosmoSteel Holdings is 1.61 times more volatile than Jupiter Fund Management. It trades about -0.01 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.04 per unit of volatility. If you would invest 96.00 in Jupiter Fund Management on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Jupiter Fund Management or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CosmoSteel Holdings Limited vs. Jupiter Fund Management
Performance |
| Timeline |
| CosmoSteel Holdings |
| Jupiter Fund Management |
CosmoSteel Holdings and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CosmoSteel Holdings and Jupiter Fund
The main advantage of trading using opposite CosmoSteel Holdings and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CosmoSteel Holdings 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.| CosmoSteel Holdings vs. Superior Plus Corp | CosmoSteel Holdings vs. SIVERS SEMICONDUCTORS AB | CosmoSteel Holdings vs. Identiv | CosmoSteel Holdings vs. Intel |
| Jupiter Fund vs. Ribbon Communications | Jupiter Fund vs. Shenandoah Telecommunications | Jupiter Fund vs. KB HOME | 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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