Correlation Between Jupiter Fund and Amazon
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Amazon 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 Amazon 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 Amazon Inc, you can compare the effects of market volatilities on Jupiter Fund and Amazon 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 Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Amazon.
Diversification Opportunities for Jupiter Fund and Amazon
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jupiter and Amazon is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc 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 Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Amazon go up and down completely randomly.
Pair Corralation between Jupiter Fund and Amazon
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Amazon. But the stock apears to be less risky and, when comparing its historical volatility, Jupiter Fund Management is 2.23 times less risky than Amazon. The stock trades about -0.12 of its potential returns per unit of risk. The Amazon Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 22,050 in Amazon Inc on October 29, 2024 and sell it today you would earn a total of 1,850 from holding Amazon Inc or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Amazon Inc
Performance |
| Timeline |
| Jupiter Fund Management |
| Amazon Inc |
Jupiter Fund and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Amazon
The main advantage of trading using opposite Jupiter Fund and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.| Jupiter Fund vs. Polar Capital Technology | Jupiter Fund vs. Made Tech Group | Jupiter Fund vs. Ashtead Technology Holdings | Jupiter Fund vs. Tavistock Investments Plc |
| Amazon vs. Gamma Communications PLC | Amazon vs. Southwest Airlines Co | Amazon vs. Verizon Communications | Amazon vs. International Consolidated Airlines |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |