Correlation Between Jupiter Fund and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC, you can compare the effects of market volatilities on Jupiter Fund and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Lendinvest PLC.
Diversification Opportunities for Jupiter Fund and Lendinvest PLC
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jupiter and Lendinvest is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Lendinvest PLC go up and down completely randomly.
Pair Corralation between Jupiter Fund and Lendinvest PLC
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 1.11 times more return on investment than Lendinvest PLC. However, Jupiter Fund is 1.11 times more volatile than Lendinvest PLC. It trades about 0.09 of its potential returns per unit of risk. Lendinvest PLC is currently generating about 0.08 per unit of risk. If you would invest 8,140 in Jupiter Fund Management on August 29, 2024 and sell it today you would earn a total of 190.00 from holding Jupiter Fund Management or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jupiter Fund Management vs. Lendinvest PLC
Performance |
| Timeline |
| Jupiter Fund Management |
| Lendinvest PLC |
Jupiter Fund and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Lendinvest PLC
The main advantage of trading using opposite Jupiter Fund and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC's long position.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Lendinvest PLC | Jupiter Fund vs. Neometals | Jupiter Fund vs. Coor Service Management |
| Lendinvest PLC vs. Toyota Motor Corp | Lendinvest PLC vs. Neometals | Lendinvest PLC vs. Coor Service Management | Lendinvest PLC vs. Albion Technology General |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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