Correlation Between Jupiter Fund and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Oakley Capital 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 Oakley Capital 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 Oakley Capital Investments, you can compare the effects of market volatilities on Jupiter Fund and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Oakley Capital.
Diversification Opportunities for Jupiter Fund and Oakley Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jupiter and Oakley is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Oakley Capital go up and down completely randomly.
Pair Corralation between Jupiter Fund and Oakley Capital
Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 2.08 times more return on investment than Oakley Capital. However, Jupiter Fund is 2.08 times more volatile than Oakley Capital Investments. It trades about 0.0 of its potential returns per unit of risk. Oakley Capital Investments is currently generating about -0.02 per unit of risk. If you would invest 8,420 in Jupiter Fund Management on November 28, 2024 and sell it today you would lose (230.00) from holding Jupiter Fund Management or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Oakley Capital Investments
Performance |
| Timeline |
| Jupiter Fund Management |
| Oakley Capital Inves |
Jupiter Fund and Oakley Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Oakley Capital
The main advantage of trading using opposite Jupiter Fund and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital's long position.| Jupiter Fund vs. Hilton Food Group | Jupiter Fund vs. Cairo Communication SpA | Jupiter Fund vs. Monster Beverage Corp | Jupiter Fund vs. Roebuck Food Group |
| Oakley Capital vs. Scandic Hotels Group | Oakley Capital vs. Livermore Investments Group | Oakley Capital vs. Smithson Investment Trust | Oakley Capital vs. Ecclesiastical Insurance Office |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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