Correlation Between Leroy Seafood and Jupiter Fund

Can any of the company-specific risk be diversified away by investing in both Leroy Seafood 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 Leroy Seafood and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Leroy Seafood Group and Jupiter Fund Management, you can compare the effects of market volatilities on Leroy Seafood 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 Leroy Seafood with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leroy Seafood and Jupiter Fund.

Diversification Opportunities for Leroy Seafood and Jupiter Fund

-0.05

Correlation Coefficient

Leroy Seafood  Jupiter Fund

Good diversification

The 3 months correlation between Leroy and Jupiter is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Leroy Seafood Group 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 Leroy Seafood 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 Leroy Seafood Group 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 Leroy Seafood i.e., Leroy Seafood and Jupiter Fund go up and down completely randomly.

Pair Corralation between Leroy Seafood and Jupiter Fund

Assuming the 90 days trading horizon Leroy Seafood Group is expected to generate 0.58 times more return on investment than Jupiter Fund. However, Leroy Seafood Group is 1.73 times less risky than Jupiter Fund. It trades about -0.01 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.07 per unit of risk. If you would invest  4,933  in Leroy Seafood Group on December 30, 2024 and sell it today you would lose (60.00) from holding Leroy Seafood Group or give up 1.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Leroy Seafood Group  vs.  Jupiter Fund Management

Leroy Seafood Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Leroy Seafood Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Leroy Seafood is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Jupiter Fund Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jupiter Fund Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Leroy Seafood and Jupiter Fund

The main advantage of trading using opposite Leroy Seafood and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leroy Seafood 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.

The idea behind Leroy Seafood Group and Jupiter Fund Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.