Correlation Between Jupiter Fund and Overstock
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Overstock 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 Overstock 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 Overstock, you can compare the effects of market volatilities on Jupiter Fund and Overstock 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 Overstock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Overstock.
Diversification Opportunities for Jupiter Fund and Overstock
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Overstock is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Overstock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Overstock 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 Overstock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Overstock has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Overstock go up and down completely randomly.
Pair Corralation between Jupiter Fund and Overstock
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Overstock. But the stock apears to be less risky and, when comparing its historical volatility, Jupiter Fund Management is 2.38 times less risky than Overstock. The stock trades about -0.12 of its potential returns per unit of risk. The Overstock is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 646.00 in Overstock on November 6, 2024 and sell it today you would earn a total of 115.00 from holding Overstock or generate 17.8% 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. Overstock
Performance |
| Timeline |
| Jupiter Fund Management |
| Overstock |
Jupiter Fund and Overstock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Overstock
The main advantage of trading using opposite Jupiter Fund and Overstock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Overstock 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 Overstock will offset losses from the drop in Overstock's long position.| Jupiter Fund vs. Atresmedia | Jupiter Fund vs. Scandic Hotels Group | Jupiter Fund vs. Rheinmetall AG | Jupiter Fund vs. Catena Media PLC |
| Overstock vs. Rosslyn Data Technologies | Overstock vs. Empire Metals Limited | Overstock vs. Wheaton Precious Metals | Overstock vs. GlobalData 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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