Correlation Between State Street and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both State Street 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 State Street and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street and Jupiter Fund Management, you can compare the effects of market volatilities on State Street 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 State Street with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Jupiter Fund.
Diversification Opportunities for State Street and Jupiter Fund
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Jupiter is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding State Street 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 State Street 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 State Street 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 State Street i.e., State Street and Jupiter Fund go up and down completely randomly.
Pair Corralation between State Street and Jupiter Fund
Assuming the 90 days horizon State Street is expected to generate 0.6 times more return on investment than Jupiter Fund. However, State Street is 1.66 times less risky than Jupiter Fund. It trades about 0.05 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.01 per unit of risk. If you would invest 6,768 in State Street on September 23, 2024 and sell it today you would earn a total of 2,398 from holding State Street or generate 35.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street vs. Jupiter Fund Management
Performance |
| Timeline |
| State Street |
| Jupiter Fund Management |
State Street and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Jupiter Fund
The main advantage of trading using opposite State Street and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street 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.| State Street vs. Blackstone Group | State Street vs. The Bank of | State Street vs. Ameriprise Financial | State Street vs. T Rowe Price |
| Jupiter Fund vs. Blackstone Group | Jupiter Fund vs. The Bank of | Jupiter Fund vs. Ameriprise Financial | Jupiter Fund vs. State Street |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |