Correlation Between Jupiter Fund and Ao World
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Ao World 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 Ao World 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 Ao World, you can compare the effects of market volatilities on Jupiter Fund and Ao World 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 Ao World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Ao World.
Diversification Opportunities for Jupiter Fund and Ao World
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and Ao World is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Ao World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ao World 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 Ao World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ao World has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Ao World go up and down completely randomly.
Pair Corralation between Jupiter Fund and Ao World
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 1.65 times more return on investment than Ao World. However, Jupiter Fund is 1.65 times more volatile than Ao World. It trades about -0.15 of its potential returns per unit of risk. Ao World is currently generating about -0.32 per unit of risk. If you would invest 8,640 in Jupiter Fund Management on October 25, 2024 and sell it today you would lose (800.00) from holding Jupiter Fund Management or give up 9.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Ao World
Performance |
| Timeline |
| Jupiter Fund Management |
| Ao World |
Jupiter Fund and Ao World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Ao World
The main advantage of trading using opposite Jupiter Fund and Ao World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Ao World 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 Ao World will offset losses from the drop in Ao World's long position.| Jupiter Fund vs. Games Workshop Group | Jupiter Fund vs. Auto Trader Group | Jupiter Fund vs. Coor Service Management | Jupiter Fund vs. iShares Dow Jones |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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