Correlation Between Jupiter Fund and SEB SA
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and SEB SA 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 SEB SA 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 SEB SA, you can compare the effects of market volatilities on Jupiter Fund and SEB SA 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 SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and SEB SA.
Diversification Opportunities for Jupiter Fund and SEB SA
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and SEB is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA 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 SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and SEB SA go up and down completely randomly.
Pair Corralation between Jupiter Fund and SEB SA
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 1.41 times more return on investment than SEB SA. However, Jupiter Fund is 1.41 times more volatile than SEB SA. It trades about 0.0 of its potential returns per unit of risk. SEB SA is currently generating about -0.01 per unit of risk. If you would invest 9,063 in Jupiter Fund Management on August 29, 2024 and sell it today you would lose (683.00) from holding Jupiter Fund Management or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. SEB SA
Performance |
| Timeline |
| Jupiter Fund Management |
| SEB SA |
Jupiter Fund and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and SEB SA
The main advantage of trading using opposite Jupiter Fund and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Lendinvest PLC | Jupiter Fund vs. Neometals | Jupiter Fund vs. Coor Service Management |
| SEB SA vs. Waste Management | SEB SA vs. Tatton Asset Management | SEB SA vs. Jupiter Fund Management | SEB SA vs. Endeavour Mining Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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