Correlation Between TIANDE CHEMICAL and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both TIANDE CHEMICAL 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 TIANDE CHEMICAL and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIANDE CHEMICAL and Jupiter Fund Management, you can compare the effects of market volatilities on TIANDE CHEMICAL 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 TIANDE CHEMICAL with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIANDE CHEMICAL and Jupiter Fund.
Diversification Opportunities for TIANDE CHEMICAL and Jupiter Fund
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TIANDE and Jupiter is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding TIANDE CHEMICAL 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 TIANDE CHEMICAL 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 TIANDE CHEMICAL 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 TIANDE CHEMICAL i.e., TIANDE CHEMICAL and Jupiter Fund go up and down completely randomly.
Pair Corralation between TIANDE CHEMICAL and Jupiter Fund
Assuming the 90 days trading horizon TIANDE CHEMICAL is expected to generate 0.89 times more return on investment than Jupiter Fund. However, TIANDE CHEMICAL is 1.12 times less risky than Jupiter Fund. It trades about 0.06 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.03 per unit of risk. If you would invest 5.25 in TIANDE CHEMICAL on September 2, 2024 and sell it today you would earn a total of 2.00 from holding TIANDE CHEMICAL or generate 38.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
TIANDE CHEMICAL vs. Jupiter Fund Management
Performance |
| Timeline |
| TIANDE CHEMICAL |
| Jupiter Fund Management |
TIANDE CHEMICAL and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TIANDE CHEMICAL and Jupiter Fund
The main advantage of trading using opposite TIANDE CHEMICAL and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIANDE CHEMICAL 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.| TIANDE CHEMICAL vs. SIVERS SEMICONDUCTORS AB | TIANDE CHEMICAL vs. Darden Restaurants | TIANDE CHEMICAL vs. Reliance Steel Aluminum | TIANDE CHEMICAL vs. Q2M Managementberatung AG |
| Jupiter Fund vs. Ameriprise Financial | Jupiter Fund vs. Ares Management Corp | Jupiter Fund vs. Superior Plus Corp | Jupiter Fund vs. NMI Holdings |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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