Correlation Between ITALIAN WINE and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both ITALIAN WINE 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 ITALIAN WINE and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITALIAN WINE BRANDS and Jupiter Fund Management, you can compare the effects of market volatilities on ITALIAN WINE 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 ITALIAN WINE with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITALIAN WINE and Jupiter Fund.
Diversification Opportunities for ITALIAN WINE and Jupiter Fund
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ITALIAN and Jupiter is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding ITALIAN WINE BRANDS 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 ITALIAN WINE 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 ITALIAN WINE BRANDS 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 ITALIAN WINE i.e., ITALIAN WINE and Jupiter Fund go up and down completely randomly.
Pair Corralation between ITALIAN WINE and Jupiter Fund
Assuming the 90 days horizon ITALIAN WINE BRANDS is expected to generate 0.82 times more return on investment than Jupiter Fund. However, ITALIAN WINE BRANDS is 1.21 times less risky than Jupiter Fund. It trades about 0.0 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.02 per unit of risk. If you would invest 2,210 in ITALIAN WINE BRANDS on October 30, 2024 and sell it today you would lose (20.00) from holding ITALIAN WINE BRANDS or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITALIAN WINE BRANDS vs. Jupiter Fund Management
Performance |
| Timeline |
| ITALIAN WINE BRANDS |
| Jupiter Fund Management |
ITALIAN WINE and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITALIAN WINE and Jupiter Fund
The main advantage of trading using opposite ITALIAN WINE and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITALIAN WINE 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.| ITALIAN WINE vs. United Breweries Co | ITALIAN WINE vs. UNIVERSAL MUSIC GROUP | ITALIAN WINE vs. Highlight Communications AG | ITALIAN WINE vs. Monster Beverage Corp |
| Jupiter Fund vs. FIREWEED METALS P | Jupiter Fund vs. Western Copper and | Jupiter Fund vs. VIENNA INSURANCE GR | Jupiter Fund vs. ZURICH INSURANCE GROUP |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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