Correlation Between METHODE ELECTRONICS and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both METHODE ELECTRONICS and Jupiter Fund 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 METHODE ELECTRONICS and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METHODE ELECTRONICS and Jupiter Fund Management, you can compare the effects of market volatilities on METHODE ELECTRONICS and Jupiter Fund 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 METHODE ELECTRONICS with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of METHODE ELECTRONICS and Jupiter Fund.
Diversification Opportunities for METHODE ELECTRONICS and Jupiter Fund
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between METHODE and Jupiter is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding METHODE ELECTRONICS and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and METHODE ELECTRONICS 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 METHODE ELECTRONICS are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of METHODE ELECTRONICS i.e., METHODE ELECTRONICS and Jupiter Fund go up and down completely randomly.
Pair Corralation between METHODE ELECTRONICS and Jupiter Fund
Assuming the 90 days trading horizon METHODE ELECTRONICS is expected to under-perform the Jupiter Fund. In addition to that, METHODE ELECTRONICS is 1.38 times more volatile than Jupiter Fund Management. It trades about -0.26 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.01 per unit of volatility. If you would invest 100.00 in Jupiter Fund Management on October 14, 2024 and sell it today you would lose (1.00) from holding Jupiter Fund Management or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
METHODE ELECTRONICS vs. Jupiter Fund Management
Performance |
| Timeline |
| METHODE ELECTRONICS |
| Jupiter Fund Management |
METHODE ELECTRONICS and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METHODE ELECTRONICS and Jupiter Fund
The main advantage of trading using opposite METHODE ELECTRONICS and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METHODE ELECTRONICS position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| METHODE ELECTRONICS vs. MOLSON RS BEVERAGE | METHODE ELECTRONICS vs. EBRO FOODS | METHODE ELECTRONICS vs. National Beverage Corp | METHODE ELECTRONICS vs. Semiconductor Manufacturing International |
| Jupiter Fund vs. Playtech plc | Jupiter Fund vs. USWE SPORTS AB | Jupiter Fund vs. ASPEN TECHINC DL | Jupiter Fund vs. JD SPORTS FASH |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |