Correlation Between COSMOSTEEL HLDGS and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS 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 HLDGS 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 HLDGS and Jupiter Fund Management, you can compare the effects of market volatilities on COSMOSTEEL HLDGS 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 HLDGS with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and Jupiter Fund.
Diversification Opportunities for COSMOSTEEL HLDGS and Jupiter Fund
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COSMOSTEEL and Jupiter is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS 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 HLDGS 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 HLDGS 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 HLDGS i.e., COSMOSTEEL HLDGS and Jupiter Fund go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and Jupiter Fund
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 1.2 times more return on investment than Jupiter Fund. However, COSMOSTEEL HLDGS is 1.2 times more volatile than Jupiter Fund Management. It trades about 0.03 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.03 per unit of risk. If you would invest 6.10 in COSMOSTEEL HLDGS on September 4, 2024 and sell it today you would earn a total of 0.15 from holding COSMOSTEEL HLDGS or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. Jupiter Fund Management
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| Jupiter Fund Management |
COSMOSTEEL HLDGS and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and Jupiter Fund
The main advantage of trading using opposite COSMOSTEEL HLDGS and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS 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 HLDGS vs. TOTAL GABON | COSMOSTEEL HLDGS vs. Walgreens Boots Alliance | COSMOSTEEL HLDGS vs. Peak Resources Limited |
| Jupiter Fund vs. Tencent Music Entertainment | Jupiter Fund vs. XLMedia PLC | Jupiter Fund vs. COSMOSTEEL HLDGS | Jupiter Fund vs. CosmoSteel Holdings Limited |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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