Correlation Between Jupiter Fund and Celebrus Technologies
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Celebrus Technologies 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 Celebrus Technologies 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 Celebrus Technologies plc, you can compare the effects of market volatilities on Jupiter Fund and Celebrus Technologies 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 Celebrus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Celebrus Technologies.
Diversification Opportunities for Jupiter Fund and Celebrus Technologies
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jupiter and Celebrus is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Celebrus Technologies plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebrus Technologies 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 Celebrus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebrus Technologies plc has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Celebrus Technologies go up and down completely randomly.
Pair Corralation between Jupiter Fund and Celebrus Technologies
Assuming the 90 days trading horizon Jupiter Fund is expected to generate 2.36 times less return on investment than Celebrus Technologies. But when comparing it to its historical volatility, Jupiter Fund Management is 2.15 times less risky than Celebrus Technologies. It trades about 0.17 of its potential returns per unit of risk. Celebrus Technologies plc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 27,500 in Celebrus Technologies plc on September 2, 2024 and sell it today you would earn a total of 2,750 from holding Celebrus Technologies plc or generate 10.0% 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. Celebrus Technologies plc
Performance |
| Timeline |
| Jupiter Fund Management |
| Celebrus Technologies plc |
Jupiter Fund and Celebrus Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Celebrus Technologies
The main advantage of trading using opposite Jupiter Fund and Celebrus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Celebrus Technologies 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 Celebrus Technologies will offset losses from the drop in Celebrus Technologies' long position.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. SoftBank Group Corp | Jupiter Fund vs. OTP Bank Nyrt | Jupiter Fund vs. Las Vegas Sands |
| Celebrus Technologies vs. GB Group plc | Celebrus Technologies vs. Dotdigital Group Plc | Celebrus Technologies vs. Tracsis Plc | Celebrus Technologies vs. Microlise Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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