Correlation Between Marks and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Marks 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 Marks and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marks and Spencer and Jupiter Fund Management, you can compare the effects of market volatilities on Marks 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 Marks with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marks and Jupiter Fund.
Diversification Opportunities for Marks and Jupiter Fund
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Marks and Jupiter is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Marks and Spencer 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 Marks 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 Marks and Spencer 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 Marks i.e., Marks and Jupiter Fund go up and down completely randomly.
Pair Corralation between Marks and Jupiter Fund
Assuming the 90 days trading horizon Marks and Spencer is expected to generate 1.04 times more return on investment than Jupiter Fund. However, Marks is 1.04 times more volatile than Jupiter Fund Management. It trades about 0.01 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.0 per unit of risk. If you would invest 37,931 in Marks and Spencer on September 22, 2024 and sell it today you would earn a total of 9.00 from holding Marks and Spencer or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Marks and Spencer vs. Jupiter Fund Management
Performance |
| Timeline |
| Marks and Spencer |
| Jupiter Fund Management |
Marks and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marks and Jupiter Fund
The main advantage of trading using opposite Marks and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks 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.| Marks vs. Jupiter Fund Management | Marks vs. Hansa Investment | Marks vs. Tatton Asset Management | Marks vs. Coor Service Management |
| Jupiter Fund vs. Catalyst Media Group | Jupiter Fund vs. CATLIN GROUP | Jupiter Fund vs. Tamburi Investment Partners | Jupiter Fund vs. Magnora ASA |
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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