Correlation Between Ensign and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Ensign 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 Ensign and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Ensign Group and Jupiter Fund Management, you can compare the effects of market volatilities on Ensign 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 Ensign with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensign and Jupiter Fund.
Diversification Opportunities for Ensign and Jupiter Fund
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ensign and Jupiter is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Ensign 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 Ensign 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 The Ensign 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 Ensign i.e., Ensign and Jupiter Fund go up and down completely randomly.
Pair Corralation between Ensign and Jupiter Fund
Assuming the 90 days horizon The Ensign Group is expected to generate 0.61 times more return on investment than Jupiter Fund. However, The Ensign Group is 1.65 times less risky than Jupiter Fund. It trades about 0.06 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.02 per unit of risk. If you would invest 8,361 in The Ensign Group on October 14, 2024 and sell it today you would earn a total of 4,439 from holding The Ensign Group or generate 53.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Ensign Group vs. Jupiter Fund Management
Performance |
| Timeline |
| Ensign Group |
| Jupiter Fund Management |
Ensign and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensign and Jupiter Fund
The main advantage of trading using opposite Ensign and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensign 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.| Ensign vs. Jupiter Fund Management | Ensign vs. Singapore Airlines Limited | Ensign vs. United Airlines Holdings | Ensign vs. Q2M Managementberatung AG |
| Jupiter Fund vs. Playtech plc | Jupiter Fund vs. USWE SPORTS AB | Jupiter Fund vs. ASPEN TECHINC DL | Jupiter Fund vs. JD SPORTS FASH |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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