Correlation Between Jupiter Fund and Cincinnati Financial
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Cincinnati Financial 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 Cincinnati Financial 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 Cincinnati Financial Corp, you can compare the effects of market volatilities on Jupiter Fund and Cincinnati Financial 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 Cincinnati Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Cincinnati Financial.
Diversification Opportunities for Jupiter Fund and Cincinnati Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Cincinnati is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Cincinnati Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Financial Corp 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 Cincinnati Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cincinnati Financial Corp has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Cincinnati Financial go up and down completely randomly.
Pair Corralation between Jupiter Fund and Cincinnati Financial
Assuming the 90 days trading horizon Jupiter Fund is expected to generate 6.31 times less return on investment than Cincinnati Financial. In addition to that, Jupiter Fund is 1.28 times more volatile than Cincinnati Financial Corp. It trades about 0.02 of its total potential returns per unit of risk. Cincinnati Financial Corp is currently generating about 0.19 per unit of volatility. If you would invest 11,411 in Cincinnati Financial Corp on September 1, 2024 and sell it today you would earn a total of 4,521 from holding Cincinnati Financial Corp or generate 39.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Cincinnati Financial Corp
Performance |
| Timeline |
| Jupiter Fund Management |
| Cincinnati Financial Corp |
Jupiter Fund and Cincinnati Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Cincinnati Financial
The main advantage of trading using opposite Jupiter Fund and Cincinnati Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Cincinnati Financial 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 Cincinnati Financial will offset losses from the drop in Cincinnati Financial's long position.| Jupiter Fund vs. Livermore Investments Group | Jupiter Fund vs. Eco Animal Health | Jupiter Fund vs. Bellevue Healthcare Trust | Jupiter Fund vs. The Investment |
| Cincinnati Financial vs. DXC Technology Co | Cincinnati Financial vs. Albion Technology General | Cincinnati Financial vs. Ryanair Holdings plc | Cincinnati Financial vs. International Biotechnology Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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