Correlation Between Jupiter Fund and Universal Health
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Universal 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 Universal 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 Universal Health Services, you can compare the effects of market volatilities on Jupiter Fund and Universal 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 Universal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Universal Health.
Diversification Opportunities for Jupiter Fund and Universal Health
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jupiter and Universal is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Universal Health Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Health Services 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 Universal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Health Services has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Universal Health go up and down completely randomly.
Pair Corralation between Jupiter Fund and Universal Health
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 0.97 times more return on investment than Universal Health. However, Jupiter Fund Management is 1.03 times less risky than Universal Health. It trades about -0.01 of its potential returns per unit of risk. Universal Health Services is currently generating about -0.1 per unit of risk. If you would invest 8,540 in Jupiter Fund Management on November 28, 2024 and sell it today you would lose (350.00) from holding Jupiter Fund Management or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Universal Health Services
Performance |
| Timeline |
| Jupiter Fund Management |
| Universal Health Services |
Jupiter Fund and Universal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Universal Health
The main advantage of trading using opposite Jupiter Fund and Universal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Universal 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 Universal Health will offset losses from the drop in Universal Health's long position.| Jupiter Fund vs. Hilton Food Group | Jupiter Fund vs. Cairo Communication SpA | Jupiter Fund vs. Monster Beverage Corp | Jupiter Fund vs. Roebuck Food Group |
| Universal Health vs. First Majestic Silver | Universal Health vs. AfriTin Mining | Universal Health vs. Hochschild Mining plc | Universal Health vs. Eastinco Mining Exploration |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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