Correlation Between Tianjin Capital and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Tianjin 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 Tianjin 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 Tianjin Capital Environmental and Jupiter Fund Management, you can compare the effects of market volatilities on Tianjin 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 Tianjin Capital with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Jupiter Fund.
Diversification Opportunities for Tianjin Capital and Jupiter Fund
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianjin and Jupiter is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental 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 Tianjin 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and Jupiter Fund go up and down completely randomly.
Pair Corralation between Tianjin Capital and Jupiter Fund
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.93 times more return on investment than Jupiter Fund. However, Tianjin Capital is 1.93 times more volatile than Jupiter Fund Management. It trades about 0.08 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 17.00 in Tianjin Capital Environmental on August 26, 2024 and sell it today you would earn a total of 21.00 from holding Tianjin Capital Environmental or generate 123.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Jupiter Fund Management
Performance |
| Timeline |
| Tianjin Capital Envi |
| Jupiter Fund Management |
Tianjin Capital and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Jupiter Fund
The main advantage of trading using opposite Tianjin Capital and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin 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.| Tianjin Capital vs. Superior Plus Corp | Tianjin Capital vs. NMI Holdings | Tianjin Capital vs. Origin Agritech | Tianjin Capital vs. SIVERS SEMICONDUCTORS AB |
| Jupiter Fund vs. New Residential Investment | Jupiter Fund vs. 24SEVENOFFICE GROUP AB | Jupiter Fund vs. Siamgas And Petrochemicals | Jupiter Fund vs. LGI Homes |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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