Correlation Between Jupiter Fund and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and G5 Entertainment 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 G5 Entertainment 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 G5 Entertainment AB, you can compare the effects of market volatilities on Jupiter Fund and G5 Entertainment 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 G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and G5 Entertainment.
Diversification Opportunities for Jupiter Fund and G5 Entertainment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and 0QUS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment 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 G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and G5 Entertainment go up and down completely randomly.
Pair Corralation between Jupiter Fund and G5 Entertainment
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the G5 Entertainment. In addition to that, Jupiter Fund is 1.5 times more volatile than G5 Entertainment AB. It trades about -0.11 of its total potential returns per unit of risk. G5 Entertainment AB is currently generating about 0.25 per unit of volatility. If you would invest 11,800 in G5 Entertainment AB on November 5, 2024 and sell it today you would earn a total of 1,200 from holding G5 Entertainment AB or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. G5 Entertainment AB
Performance |
| Timeline |
| Jupiter Fund Management |
| G5 Entertainment |
Jupiter Fund and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and G5 Entertainment
The main advantage of trading using opposite Jupiter Fund and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| Jupiter Fund vs. JD Sports Fashion | Jupiter Fund vs. One Media iP | Jupiter Fund vs. Litigation Capital Management | Jupiter Fund vs. MediaZest plc |
| G5 Entertainment vs. Ashtead Technology Holdings | G5 Entertainment vs. Diversified Energy | G5 Entertainment vs. Take Two Interactive Software | G5 Entertainment vs. Chrysalis Investments |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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