Correlation Between Jupiter Fund and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Endeavour Mining 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 Endeavour Mining 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 Endeavour Mining Corp, you can compare the effects of market volatilities on Jupiter Fund and Endeavour Mining 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 Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Endeavour Mining.
Diversification Opportunities for Jupiter Fund and Endeavour Mining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and Endeavour is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining Corp 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 Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Endeavour Mining go up and down completely randomly.
Pair Corralation between Jupiter Fund and Endeavour Mining
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Endeavour Mining. In addition to that, Jupiter Fund is 1.02 times more volatile than Endeavour Mining Corp. It trades about -0.01 of its total potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.01 per unit of volatility. If you would invest 155,107 in Endeavour Mining Corp on August 30, 2024 and sell it today you would earn a total of 2,093 from holding Endeavour Mining Corp or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Jupiter Fund Management vs. Endeavour Mining Corp
Performance |
| Timeline |
| Jupiter Fund Management |
| Endeavour Mining Corp |
Jupiter Fund and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Endeavour Mining
The main advantage of trading using opposite Jupiter Fund and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Endeavour Mining 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 Endeavour Mining will offset losses from the drop in Endeavour Mining's long position.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Lendinvest PLC | Jupiter Fund vs. Neometals | Jupiter Fund 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets |