Correlation Between Jupiter Fund and InterContinental
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and InterContinental 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 InterContinental 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 InterContinental Hotels Group, you can compare the effects of market volatilities on Jupiter Fund and InterContinental 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 InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and InterContinental.
Diversification Opportunities for Jupiter Fund and InterContinental
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and InterContinental is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels 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 InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and InterContinental go up and down completely randomly.
Pair Corralation between Jupiter Fund and InterContinental
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 1.47 times more return on investment than InterContinental. However, Jupiter Fund is 1.47 times more volatile than InterContinental Hotels Group. It trades about 0.1 of its potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.08 per unit of risk. If you would invest 8,320 in Jupiter Fund Management on September 24, 2024 and sell it today you would earn a total of 260.00 from holding Jupiter Fund Management or generate 3.13% 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. InterContinental Hotels Group
Performance |
| Timeline |
| Jupiter Fund Management |
| InterContinental Hotels |
Jupiter Fund and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and InterContinental
The main advantage of trading using opposite Jupiter Fund and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Jupiter Fund vs. Samsung Electronics Co | Jupiter Fund vs. Samsung Electronics Co | Jupiter Fund vs. Hyundai Motor | Jupiter Fund vs. Toyota Motor Corp |
| InterContinental vs. National Atomic Co | InterContinental vs. Flutter Entertainment PLC | InterContinental vs. Camellia Plc | InterContinental vs. Marwyn Value Investors |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |