Correlation Between Monks Investment and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Monks Investment 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 Monks Investment and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monks Investment Trust and Jupiter Fund Management, you can compare the effects of market volatilities on Monks Investment 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 Monks Investment with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and Jupiter Fund.
Diversification Opportunities for Monks Investment and Jupiter Fund
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monks and Jupiter is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust 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 Monks Investment 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 Monks Investment Trust 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 Monks Investment i.e., Monks Investment and Jupiter Fund go up and down completely randomly.
Pair Corralation between Monks Investment and Jupiter Fund
Assuming the 90 days trading horizon Monks Investment Trust is expected to generate 0.71 times more return on investment than Jupiter Fund. However, Monks Investment Trust is 1.41 times less risky than Jupiter Fund. It trades about 0.43 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.09 per unit of risk. If you would invest 118,200 in Monks Investment Trust on August 28, 2024 and sell it today you would earn a total of 10,200 from holding Monks Investment Trust or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monks Investment Trust vs. Jupiter Fund Management
Performance |
| Timeline |
| Monks Investment Trust |
| Jupiter Fund Management |
Monks Investment and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monks Investment and Jupiter Fund
The main advantage of trading using opposite Monks Investment and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment 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.| Monks Investment vs. Catalyst Media Group | Monks Investment vs. Oncimmune Holdings plc | Monks Investment vs. Invesco Health Care | Monks Investment vs. Coor Service Management |
| Jupiter Fund vs. Empire Metals Limited | Jupiter Fund vs. European Metals Holdings | Jupiter Fund vs. Adriatic Metals | Jupiter Fund vs. Cairo Communication SpA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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