Correlation Between Jupiter Fund and Pentair PLC
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Pentair PLC 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 Pentair PLC 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 Pentair PLC, you can compare the effects of market volatilities on Jupiter Fund and Pentair PLC 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 Pentair PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Pentair PLC.
Diversification Opportunities for Jupiter Fund and Pentair PLC
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Pentair is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Pentair PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pentair PLC 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 Pentair PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pentair PLC has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Pentair PLC go up and down completely randomly.
Pair Corralation between Jupiter Fund and Pentair PLC
Assuming the 90 days trading horizon Jupiter Fund is expected to generate 6.35 times less return on investment than Pentair PLC. In addition to that, Jupiter Fund is 1.02 times more volatile than Pentair PLC. It trades about 0.02 of its total potential returns per unit of risk. Pentair PLC is currently generating about 0.15 per unit of volatility. If you would invest 7,951 in Pentair PLC on September 1, 2024 and sell it today you would earn a total of 2,948 from holding Pentair PLC or generate 37.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.12% |
| Values | Daily Returns |
Jupiter Fund Management vs. Pentair PLC
Performance |
| Timeline |
| Jupiter Fund Management |
| Pentair PLC |
Jupiter Fund and Pentair PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Pentair PLC
The main advantage of trading using opposite Jupiter Fund and Pentair PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Pentair PLC 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 Pentair PLC will offset losses from the drop in Pentair PLC'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 |
| Pentair PLC vs. Liontrust Asset Management | Pentair PLC vs. Jupiter Fund Management | Pentair PLC vs. Sabre Insurance Group | Pentair PLC vs. Coor Service 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |