Correlation Between Retail Estates and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and Jupiter Fund Management, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Jupiter Fund.
Diversification Opportunities for Retail Estates and Jupiter Fund
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Retail and Jupiter is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV 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 Retail Estates 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 Retail Estates NV 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 Retail Estates i.e., Retail Estates and Jupiter Fund go up and down completely randomly.
Pair Corralation between Retail Estates and Jupiter Fund
Assuming the 90 days horizon Retail Estates NV is expected to generate 0.48 times more return on investment than Jupiter Fund. However, Retail Estates NV is 2.07 times less risky than Jupiter Fund. It trades about 0.02 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 5,211 in Retail Estates NV on November 7, 2024 and sell it today you would earn a total of 489.00 from holding Retail Estates NV or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates NV vs. Jupiter Fund Management
Performance |
| Timeline |
| Retail Estates NV |
| Jupiter Fund Management |
Retail Estates and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Jupiter Fund
The main advantage of trading using opposite Retail Estates and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. Realty Income | Retail Estates vs. Link Real Estate | Retail Estates vs. Superior Plus Corp | Retail Estates vs. Intel |
| Jupiter Fund vs. Keck Seng Investments | Jupiter Fund vs. JLF INVESTMENT | Jupiter Fund vs. DIVERSIFIED ROYALTY | Jupiter Fund vs. MGIC INVESTMENT |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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