Correlation Between SupplyMe Capital and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both SupplyMe 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 SupplyMe 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 SupplyMe Capital PLC and Jupiter Fund Management, you can compare the effects of market volatilities on SupplyMe 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 SupplyMe Capital with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Jupiter Fund.
Diversification Opportunities for SupplyMe Capital and Jupiter Fund
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SupplyMe and Jupiter is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC 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 SupplyMe 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 SupplyMe Capital PLC 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 SupplyMe Capital i.e., SupplyMe Capital and Jupiter Fund go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Jupiter Fund
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to under-perform the Jupiter Fund. In addition to that, SupplyMe Capital is 5.0 times more volatile than Jupiter Fund Management. It trades about -0.1 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.06 per unit of volatility. If you would invest 7,513 in Jupiter Fund Management on September 5, 2024 and sell it today you would earn a total of 977.00 from holding Jupiter Fund Management or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Jupiter Fund Management
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Jupiter Fund Management |
SupplyMe Capital and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Jupiter Fund
The main advantage of trading using opposite SupplyMe Capital and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe 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.| SupplyMe Capital vs. Gaztransport et Technigaz | SupplyMe Capital vs. mobilezone holding AG | SupplyMe Capital vs. Trainline Plc | SupplyMe Capital vs. EVS Broadcast Equipment |
| Jupiter Fund vs. SupplyMe Capital PLC | Jupiter Fund vs. Lloyds Banking Group | Jupiter Fund vs. Premier African Minerals | Jupiter Fund vs. SANTANDER UK 8 |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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