Correlation Between Jupiter Fund and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Kinnevik Investment 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 Kinnevik Investment 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 Kinnevik Investment AB, you can compare the effects of market volatilities on Jupiter Fund and Kinnevik Investment 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 Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Kinnevik Investment.
Diversification Opportunities for Jupiter Fund and Kinnevik Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jupiter and Kinnevik is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment 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 Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Jupiter Fund and Kinnevik Investment
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Kinnevik Investment. But the stock apears to be less risky and, when comparing its historical volatility, Jupiter Fund Management is 1.58 times less risky than Kinnevik Investment. The stock trades about -0.08 of its potential returns per unit of risk. The Kinnevik Investment AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,355 in Kinnevik Investment AB on August 24, 2024 and sell it today you would earn a total of 139.00 from holding Kinnevik Investment AB or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Kinnevik Investment AB
Performance |
| Timeline |
| Jupiter Fund Management |
| Kinnevik Investment |
Jupiter Fund and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Kinnevik Investment
The main advantage of trading using opposite Jupiter Fund and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Jupiter Fund vs. Home Depot | Jupiter Fund vs. River and Mercantile | Jupiter Fund vs. Chrysalis Investments | Jupiter Fund vs. Sherborne Investors Guernsey |
| Kinnevik Investment vs. Panther Metals PLC | Kinnevik Investment vs. MTI Wireless Edge | Kinnevik Investment vs. Golden Metal Resources | Kinnevik Investment vs. Systemair AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |