Correlation Between IMPERIAL TOBACCO and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both IMPERIAL TOBACCO 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 IMPERIAL TOBACCO and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMPERIAL TOBACCO and Jupiter Fund Management, you can compare the effects of market volatilities on IMPERIAL TOBACCO 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 IMPERIAL TOBACCO with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMPERIAL TOBACCO and Jupiter Fund.
Diversification Opportunities for IMPERIAL TOBACCO and Jupiter Fund
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between IMPERIAL and Jupiter is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding IMPERIAL TOBACCO 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 IMPERIAL TOBACCO 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 IMPERIAL TOBACCO 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 IMPERIAL TOBACCO i.e., IMPERIAL TOBACCO and Jupiter Fund go up and down completely randomly.
Pair Corralation between IMPERIAL TOBACCO and Jupiter Fund
Assuming the 90 days trading horizon IMPERIAL TOBACCO is expected to generate 1.62 times less return on investment than Jupiter Fund. But when comparing it to its historical volatility, IMPERIAL TOBACCO is 2.01 times less risky than Jupiter Fund. It trades about 0.18 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 97.00 in Jupiter Fund Management on September 26, 2024 and sell it today you would earn a total of 5.00 from holding Jupiter Fund Management or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IMPERIAL TOBACCO vs. Jupiter Fund Management
Performance |
| Timeline |
| IMPERIAL TOBACCO |
| Jupiter Fund Management |
IMPERIAL TOBACCO and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMPERIAL TOBACCO and Jupiter Fund
The main advantage of trading using opposite IMPERIAL TOBACCO and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMPERIAL TOBACCO 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.| IMPERIAL TOBACCO vs. Apple Inc | IMPERIAL TOBACCO vs. Apple Inc | IMPERIAL TOBACCO vs. Microsoft | IMPERIAL TOBACCO vs. Microsoft |
| Jupiter Fund vs. Blackstone Group | Jupiter Fund vs. The Bank of | Jupiter Fund vs. Ameriprise Financial | Jupiter Fund vs. State Street |
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..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |