Correlation Between Jupiter Fund and GoldMining
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and GoldMining 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 GoldMining 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 GoldMining, you can compare the effects of market volatilities on Jupiter Fund and GoldMining 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 GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and GoldMining.
Diversification Opportunities for Jupiter Fund and GoldMining
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jupiter and GoldMining is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining 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 GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and GoldMining go up and down completely randomly.
Pair Corralation between Jupiter Fund and GoldMining
Assuming the 90 days trading horizon Jupiter Fund is expected to generate 1.5 times less return on investment than GoldMining. But when comparing it to its historical volatility, Jupiter Fund Management is 1.55 times less risky than GoldMining. It trades about 0.03 of its potential returns per unit of risk. GoldMining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 125.00 in GoldMining on August 24, 2024 and sell it today you would earn a total of 4.00 from holding GoldMining or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.02% |
| Values | Daily Returns |
Jupiter Fund Management vs. GoldMining
Performance |
| Timeline |
| Jupiter Fund Management |
| GoldMining |
Jupiter Fund and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and GoldMining
The main advantage of trading using opposite Jupiter Fund and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining'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 |
| GoldMining vs. Quadrise Plc | GoldMining vs. Intuitive Investments Group | GoldMining vs. European Metals Holdings | GoldMining vs. Athelney Trust plc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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