Correlation Between JD Sports and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both JD Sports 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 JD Sports and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Sports Fashion and Jupiter Fund Management, you can compare the effects of market volatilities on JD Sports 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 JD Sports with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Jupiter Fund.
Diversification Opportunities for JD Sports and Jupiter Fund
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JD Sports and Jupiter is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion 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 JD Sports 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 JD Sports Fashion 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 JD Sports i.e., JD Sports and Jupiter Fund go up and down completely randomly.
Pair Corralation between JD Sports and Jupiter Fund
Assuming the 90 days trading horizon JD Sports Fashion is expected to generate 1.07 times more return on investment than Jupiter Fund. However, JD Sports is 1.07 times more volatile than Jupiter Fund Management. It trades about -0.08 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.1 per unit of risk. If you would invest 9,514 in JD Sports Fashion on November 3, 2024 and sell it today you would lose (602.00) from holding JD Sports Fashion or give up 6.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Sports Fashion vs. Jupiter Fund Management
Performance |
| Timeline |
| JD Sports Fashion |
| Jupiter Fund Management |
JD Sports and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Jupiter Fund
The main advantage of trading using opposite JD Sports and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports 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.| JD Sports vs. FC Investment Trust | JD Sports vs. Bankers Investment Trust | JD Sports vs. Batm Advanced Communications | JD Sports vs. The Mercantile Investment |
| Jupiter Fund vs. Vienna Insurance Group | Jupiter Fund vs. Virgin Wines UK | Jupiter Fund vs. St Galler Kantonalbank | Jupiter Fund vs. Naked Wines plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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