Correlation Between Jupiter Fund and Extra Space
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Extra Space 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 Extra Space 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 Extra Space Storage, you can compare the effects of market volatilities on Jupiter Fund and Extra Space 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 Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Extra Space.
Diversification Opportunities for Jupiter Fund and Extra Space
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jupiter and Extra is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage 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 Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Extra Space go up and down completely randomly.
Pair Corralation between Jupiter Fund and Extra Space
Assuming the 90 days trading horizon Jupiter Fund is expected to generate 3.78 times less return on investment than Extra Space. In addition to that, Jupiter Fund is 1.27 times more volatile than Extra Space Storage. It trades about 0.02 of its total potential returns per unit of risk. Extra Space Storage is currently generating about 0.11 per unit of volatility. If you would invest 14,158 in Extra Space Storage on September 1, 2024 and sell it today you would earn a total of 3,067 from holding Extra Space Storage or generate 21.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Jupiter Fund Management vs. Extra Space Storage
Performance |
| Timeline |
| Jupiter Fund Management |
| Extra Space Storage |
Jupiter Fund and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Extra Space
The main advantage of trading using opposite Jupiter Fund and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Extra Space 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 Extra Space will offset losses from the drop in Extra Space'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 |
| Extra Space vs. AcadeMedia AB | Extra Space vs. Ecclesiastical Insurance Office | Extra Space vs. Fortune Brands Home | Extra Space vs. G5 Entertainment AB |
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.
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