Correlation Between Polar Capital and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Polar Capital 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 Polar Capital and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Jupiter Fund Management, you can compare the effects of market volatilities on Polar Capital 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 Polar Capital with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Jupiter Fund.
Diversification Opportunities for Polar Capital and Jupiter Fund
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polar and Jupiter is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology 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 Polar Capital 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 Polar Capital Technology 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 Polar Capital i.e., Polar Capital and Jupiter Fund go up and down completely randomly.
Pair Corralation between Polar Capital and Jupiter Fund
Assuming the 90 days trading horizon Polar Capital Technology is expected to generate 0.73 times more return on investment than Jupiter Fund. However, Polar Capital Technology is 1.38 times less risky than Jupiter Fund. It trades about 0.03 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.15 per unit of risk. If you would invest 36,300 in Polar Capital Technology on November 7, 2024 and sell it today you would earn a total of 400.00 from holding Polar Capital Technology or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polar Capital Technology vs. Jupiter Fund Management
Performance |
| Timeline |
| Polar Capital Technology |
| Jupiter Fund Management |
Polar Capital and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Jupiter Fund
The main advantage of trading using opposite Polar Capital and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital 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.| Polar Capital vs. Diversified Energy | Polar Capital vs. Rheinmetall AG | Polar Capital vs. Wheaton Precious Metals | Polar Capital vs. Fulcrum Metals PLC |
| Jupiter Fund vs. European Metals Holdings | Jupiter Fund vs. FC Investment Trust | Jupiter Fund vs. Westlake Chemical Corp | Jupiter Fund vs. AMG Advanced Metallurgical |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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