Correlation Between Jupiter Fund and State Bank
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and State Bank 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 State Bank 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 State Bank of, you can compare the effects of market volatilities on Jupiter Fund and State Bank 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 State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and State Bank.
Diversification Opportunities for Jupiter Fund and State Bank
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and State is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and State Bank go up and down completely randomly.
Pair Corralation between Jupiter Fund and State Bank
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the State Bank. In addition to that, Jupiter Fund is 1.39 times more volatile than State Bank of. It trades about -0.02 of its total potential returns per unit of risk. State Bank of is currently generating about 0.04 per unit of volatility. If you would invest 7,211 in State Bank of on August 26, 2024 and sell it today you would earn a total of 2,439 from holding State Bank of or generate 33.82% 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. State Bank of
Performance |
| Timeline |
| Jupiter Fund Management |
| State Bank |
Jupiter Fund and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and State Bank
The main advantage of trading using opposite Jupiter Fund and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| Jupiter Fund vs. Automatic Data Processing | Jupiter Fund vs. Ion Beam Applications | Jupiter Fund vs. Alliance Data Systems | Jupiter Fund vs. Eastman Chemical Co |
| State Bank vs. Kinnevik Investment AB | State Bank vs. EVS Broadcast Equipment | State Bank vs. Jupiter Fund Management | State Bank vs. Bankers Investment Trust |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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