Correlation Between Jupiter Fund and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Cardinal Health 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 Cardinal Health 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 Cardinal Health, you can compare the effects of market volatilities on Jupiter Fund and Cardinal Health 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 Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Cardinal Health.
Diversification Opportunities for Jupiter Fund and Cardinal Health
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jupiter and Cardinal is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health 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 Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Cardinal Health go up and down completely randomly.
Pair Corralation between Jupiter Fund and Cardinal Health
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Cardinal Health. In addition to that, Jupiter Fund is 1.63 times more volatile than Cardinal Health. It trades about -0.01 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.08 per unit of volatility. If you would invest 7,451 in Cardinal Health on August 30, 2024 and sell it today you would earn a total of 4,821 from holding Cardinal Health or generate 64.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Jupiter Fund Management vs. Cardinal Health
Performance |
| Timeline |
| Jupiter Fund Management |
| Cardinal Health |
Jupiter Fund and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Cardinal Health
The main advantage of trading using opposite Jupiter Fund and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Cardinal Health 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 Cardinal Health will offset losses from the drop in Cardinal Health's long position.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Lendinvest PLC | Jupiter Fund vs. Neometals | Jupiter Fund vs. Coor Service Management |
| Cardinal Health vs. Lendinvest PLC | Cardinal Health vs. Neometals | Cardinal Health vs. Albion Technology General | Cardinal Health vs. Jupiter Fund Management |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |