Correlation Between One Media and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both One Media 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 One Media and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and Jupiter Fund Management, you can compare the effects of market volatilities on One Media 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 One Media with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Jupiter Fund.
Diversification Opportunities for One Media and Jupiter Fund
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between One and Jupiter is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP 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 One Media 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 One Media iP 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 One Media i.e., One Media and Jupiter Fund go up and down completely randomly.
Pair Corralation between One Media and Jupiter Fund
Assuming the 90 days trading horizon One Media iP is expected to under-perform the Jupiter Fund. In addition to that, One Media is 1.17 times more volatile than Jupiter Fund Management. It trades about -0.02 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 11,348 in Jupiter Fund Management on September 13, 2024 and sell it today you would lose (2,898) from holding Jupiter Fund Management or give up 25.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Media iP vs. Jupiter Fund Management
Performance |
| Timeline |
| One Media iP |
| Jupiter Fund Management |
One Media and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Jupiter Fund
The main advantage of trading using opposite One Media and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media 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.| One Media vs. OneSavings Bank PLC | One Media vs. Alior Bank SA | One Media vs. Discover Financial Services | One Media vs. St Galler Kantonalbank |
| Jupiter Fund vs. Catalyst Media Group | Jupiter Fund vs. Virgin Wines UK | Jupiter Fund vs. One Media iP | Jupiter Fund vs. Home Depot |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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