Correlation Between Jupiter Fund and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and JLEN Environmental 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 JLEN Environmental 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 JLEN Environmental Assets, you can compare the effects of market volatilities on Jupiter Fund and JLEN Environmental 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 JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and JLEN Environmental.
Diversification Opportunities for Jupiter Fund and JLEN Environmental
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jupiter and JLEN is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and JLEN Environmental go up and down completely randomly.
Pair Corralation between Jupiter Fund and JLEN Environmental
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 1.66 times more return on investment than JLEN Environmental. However, Jupiter Fund is 1.66 times more volatile than JLEN Environmental Assets. It trades about -0.14 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.23 per unit of risk. If you would invest 8,460 in Jupiter Fund Management on October 30, 2024 and sell it today you would lose (730.00) from holding Jupiter Fund Management or give up 8.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. JLEN Environmental Assets
Performance |
| Timeline |
| Jupiter Fund Management |
| JLEN Environmental Assets |
Jupiter Fund and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and JLEN Environmental
The main advantage of trading using opposite Jupiter Fund and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| Jupiter Fund vs. Fortune Brands Home | Jupiter Fund vs. British American Tobacco | Jupiter Fund vs. New Residential Investment | Jupiter Fund vs. Taiwan Semiconductor Manufacturing |
| JLEN Environmental vs. Geely Automobile Holdings | JLEN Environmental vs. Flow Traders NV | JLEN Environmental vs. Games Workshop Group | JLEN Environmental vs. Charter Communications Cl |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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