Correlation Between Jupiter Fund and Systemair
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Systemair 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 Systemair 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 Systemair AB, you can compare the effects of market volatilities on Jupiter Fund and Systemair 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 Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Systemair.
Diversification Opportunities for Jupiter Fund and Systemair
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jupiter and Systemair is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB 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 Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Systemair go up and down completely randomly.
Pair Corralation between Jupiter Fund and Systemair
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 0.62 times more return on investment than Systemair. However, Jupiter Fund Management is 1.62 times less risky than Systemair. It trades about 0.12 of its potential returns per unit of risk. Systemair AB is currently generating about -0.07 per unit of risk. If you would invest 8,320 in Jupiter Fund Management on September 25, 2024 and sell it today you would earn a total of 320.00 from holding Jupiter Fund Management or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Systemair AB
Performance |
| Timeline |
| Jupiter Fund Management |
| Systemair AB |
Jupiter Fund and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Systemair
The main advantage of trading using opposite Jupiter Fund and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Jupiter Fund vs. Samsung Electronics Co | Jupiter Fund vs. Samsung Electronics Co | Jupiter Fund vs. Hyundai Motor | Jupiter Fund vs. Toyota Motor Corp |
| Systemair vs. Uniper SE | Systemair vs. Mulberry Group PLC | Systemair vs. London Security Plc | Systemair vs. Triad Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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