Correlation Between NH HOTEL and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both NH HOTEL 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 NH HOTEL and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH HOTEL GROUP and Jupiter Fund Management, you can compare the effects of market volatilities on NH HOTEL 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 NH HOTEL with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH HOTEL and Jupiter Fund.
Diversification Opportunities for NH HOTEL and Jupiter Fund
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NH5 and Jupiter is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NH HOTEL GROUP 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 NH HOTEL 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 NH HOTEL GROUP 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 NH HOTEL i.e., NH HOTEL and Jupiter Fund go up and down completely randomly.
Pair Corralation between NH HOTEL and Jupiter Fund
Assuming the 90 days trading horizon NH HOTEL is expected to generate 9.35 times less return on investment than Jupiter Fund. In addition to that, NH HOTEL is 2.19 times more volatile than Jupiter Fund Management. It trades about 0.01 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.12 per unit of volatility. If you would invest 96.00 in Jupiter Fund Management on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Jupiter Fund Management or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH HOTEL GROUP vs. Jupiter Fund Management
Performance |
| Timeline |
| NH HOTEL GROUP |
| Jupiter Fund Management |
NH HOTEL and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH HOTEL and Jupiter Fund
The main advantage of trading using opposite NH HOTEL and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH HOTEL 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.| NH HOTEL vs. SIVERS SEMICONDUCTORS AB | NH HOTEL vs. Darden Restaurants | NH HOTEL vs. Reliance Steel Aluminum | NH HOTEL vs. Q2M Managementberatung AG |
| Jupiter Fund vs. Harmony Gold Mining | Jupiter Fund vs. NH HOTEL GROUP | Jupiter Fund vs. ADRIATIC METALS LS 013355 | Jupiter Fund vs. Zijin Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |