Correlation Between Jupiter Green and SSP Group
Can any of the company-specific risk be diversified away by investing in both Jupiter Green and SSP Group 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 Jupiter Green and SSP Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Green Investment and SSP Group PLC, you can compare the effects of market volatilities on Jupiter Green and SSP Group 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 Jupiter Green with a short position of SSP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Green and SSP Group.
Diversification Opportunities for Jupiter Green and SSP Group
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jupiter and SSP is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Green Investment and SSP Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSP Group PLC and Jupiter Green 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 Jupiter Green Investment are associated (or correlated) with SSP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSP Group PLC has no effect on the direction of Jupiter Green i.e., Jupiter Green and SSP Group go up and down completely randomly.
Pair Corralation between Jupiter Green and SSP Group
Assuming the 90 days trading horizon Jupiter Green Investment is expected to generate 0.23 times more return on investment than SSP Group. However, Jupiter Green Investment is 4.41 times less risky than SSP Group. It trades about 0.23 of its potential returns per unit of risk. SSP Group PLC is currently generating about 0.03 per unit of risk. If you would invest 22,900 in Jupiter Green Investment on October 24, 2024 and sell it today you would earn a total of 1,500 from holding Jupiter Green Investment or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Green Investment vs. SSP Group PLC
Performance |
| Timeline |
| Jupiter Green Investment |
| SSP Group PLC |
Jupiter Green and SSP Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Green and SSP Group
The main advantage of trading using opposite Jupiter Green and SSP Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Green position performs unexpectedly, SSP Group 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 SSP Group will offset losses from the drop in SSP Group's long position.| Jupiter Green vs. Infineon Technologies AG | Jupiter Green vs. Xeros Technology Group | Jupiter Green vs. BW Offshore | Jupiter Green vs. Take Two Interactive Software |
| SSP Group vs. United Utilities Group | SSP Group vs. BlackRock Frontiers Investment | SSP Group vs. European Metals Holdings | SSP Group vs. Jupiter Green Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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