Correlation Between Jupiter Fund and Lindsell Train
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Lindsell Train 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 Lindsell Train 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 Lindsell Train Investment, you can compare the effects of market volatilities on Jupiter Fund and Lindsell Train 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 Lindsell Train. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Lindsell Train.
Diversification Opportunities for Jupiter Fund and Lindsell Train
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jupiter and Lindsell is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Lindsell Train Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindsell Train Investment 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 Lindsell Train. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindsell Train Investment has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Lindsell Train go up and down completely randomly.
Pair Corralation between Jupiter Fund and Lindsell Train
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 1.66 times more return on investment than Lindsell Train. However, Jupiter Fund is 1.66 times more volatile than Lindsell Train Investment. It trades about -0.01 of its potential returns per unit of risk. Lindsell Train Investment is currently generating about -0.04 per unit of risk. If you would invest 11,130 in Jupiter Fund Management on August 30, 2024 and sell it today you would lose (2,750) from holding Jupiter Fund Management or give up 24.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Lindsell Train Investment
Performance |
| Timeline |
| Jupiter Fund Management |
| Lindsell Train Investment |
Jupiter Fund and Lindsell Train Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Lindsell Train
The main advantage of trading using opposite Jupiter Fund and Lindsell Train positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Lindsell Train 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 Lindsell Train will offset losses from the drop in Lindsell Train's long position.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Neometals | Jupiter Fund vs. Coor Service Management | Jupiter Fund vs. JPMorgan ETFs ICAV |
| Lindsell Train vs. Toyota Motor Corp | Lindsell Train vs. Neometals | Lindsell Train vs. Coor Service Management | Lindsell Train vs. Jupiter Fund 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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