Correlation Between Jupiter Fund and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and FuelCell Energy 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 Fund and FuelCell Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Fund Management and FuelCell Energy, you can compare the effects of market volatilities on Jupiter Fund and FuelCell Energy 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 Fund with a short position of FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and FuelCell Energy.
Diversification Opportunities for Jupiter Fund and FuelCell Energy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and FuelCell is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy and Jupiter Fund 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 Fund Management are associated (or correlated) with FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and FuelCell Energy go up and down completely randomly.
Pair Corralation between Jupiter Fund and FuelCell Energy
Assuming the 90 days trading horizon Jupiter Fund is expected to generate 208.1 times less return on investment than FuelCell Energy. But when comparing it to its historical volatility, Jupiter Fund Management is 67.22 times less risky than FuelCell Energy. It trades about 0.04 of its potential returns per unit of risk. FuelCell Energy is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,500 in FuelCell Energy on November 4, 2024 and sell it today you would lose (722.00) from holding FuelCell Energy or give up 48.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Jupiter Fund Management vs. FuelCell Energy
Performance |
| Timeline |
| Jupiter Fund Management |
| FuelCell Energy |
Jupiter Fund and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and FuelCell Energy
The main advantage of trading using opposite Jupiter Fund and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, FuelCell Energy 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 FuelCell Energy will offset losses from the drop in FuelCell Energy's long position.| Jupiter Fund vs. Vienna Insurance Group | Jupiter Fund vs. Virgin Wines UK | Jupiter Fund vs. St Galler Kantonalbank | Jupiter Fund vs. Naked Wines plc |
| FuelCell Energy vs. Lindsell Train Investment | FuelCell Energy vs. Lowland Investment Co | FuelCell Energy vs. Take Two Interactive Software | FuelCell Energy vs. Made Tech Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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