Correlation Between Jupiter Fund and BYD Co
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and BYD Co 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 BYD Co 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 BYD Co, you can compare the effects of market volatilities on Jupiter Fund and BYD Co 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 BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and BYD Co.
Diversification Opportunities for Jupiter Fund and BYD Co
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jupiter and BYD is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and BYD Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co 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 BYD Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Co has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and BYD Co go up and down completely randomly.
Pair Corralation between Jupiter Fund and BYD Co
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the BYD Co. But the stock apears to be less risky and, when comparing its historical volatility, Jupiter Fund Management is 7.23 times less risky than BYD Co. The stock trades about -0.01 of its potential returns per unit of risk. The BYD Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,505 in BYD Co on August 30, 2024 and sell it today you would earn a total of 55.00 from holding BYD Co or generate 1.57% 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. BYD Co
Performance |
| Timeline |
| Jupiter Fund Management |
| BYD Co |
Jupiter Fund and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and BYD Co
The main advantage of trading using opposite Jupiter Fund and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, BYD Co 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 BYD Co will offset losses from the drop in BYD Co's long position.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Lendinvest PLC | Jupiter Fund vs. Neometals | Jupiter Fund vs. Coor Service Management |
| BYD Co vs. Lendinvest PLC | BYD Co vs. Neometals | BYD Co vs. Albion Technology General | BYD Co vs. Jupiter Fund Management |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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