Correlation Between Jupiter Fund and Cognizant Technology
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Cognizant Technology 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 Cognizant Technology 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 Cognizant Technology Solutions, you can compare the effects of market volatilities on Jupiter Fund and Cognizant Technology 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 Cognizant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Cognizant Technology.
Diversification Opportunities for Jupiter Fund and Cognizant Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Cognizant is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Cognizant Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognizant Technology 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 Cognizant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cognizant Technology has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Cognizant Technology go up and down completely randomly.
Pair Corralation between Jupiter Fund and Cognizant Technology
Assuming the 90 days trading horizon Jupiter Fund is expected to generate 1.3 times less return on investment than Cognizant Technology. In addition to that, Jupiter Fund is 1.85 times more volatile than Cognizant Technology Solutions. It trades about 0.03 of its total potential returns per unit of risk. Cognizant Technology Solutions is currently generating about 0.07 per unit of volatility. If you would invest 6,479 in Cognizant Technology Solutions on September 1, 2024 and sell it today you would earn a total of 1,601 from holding Cognizant Technology Solutions or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.9% |
| Values | Daily Returns |
Jupiter Fund Management vs. Cognizant Technology Solutions
Performance |
| Timeline |
| Jupiter Fund Management |
| Cognizant Technology |
Jupiter Fund and Cognizant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Cognizant Technology
The main advantage of trading using opposite Jupiter Fund and Cognizant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Cognizant Technology 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 Cognizant Technology will offset losses from the drop in Cognizant Technology'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 |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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