Correlation Between Corporate Travel and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Corporate Travel 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 Corporate Travel and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and Jupiter Fund Management, you can compare the effects of market volatilities on Corporate Travel 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 Corporate Travel with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and Jupiter Fund.
Diversification Opportunities for Corporate Travel and Jupiter Fund
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Corporate and Jupiter is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management 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 Corporate Travel 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 Corporate Travel Management 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 Corporate Travel i.e., Corporate Travel and Jupiter Fund go up and down completely randomly.
Pair Corralation between Corporate Travel and Jupiter Fund
Assuming the 90 days trading horizon Corporate Travel Management is expected to generate 0.71 times more return on investment than Jupiter Fund. However, Corporate Travel Management is 1.41 times less risky than Jupiter Fund. It trades about 0.04 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 850.00 in Corporate Travel Management on November 20, 2024 and sell it today you would earn a total of 35.00 from holding Corporate Travel Management or generate 4.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Corporate Travel Management vs. Jupiter Fund Management
Performance |
Timeline |
Corporate Travel Man |
Jupiter Fund Management |
Corporate Travel and Jupiter Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Corporate Travel and Jupiter Fund
The main advantage of trading using opposite Corporate Travel and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel 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.Corporate Travel vs. Fevertree Drinks PLC | Corporate Travel vs. SENECA FOODS A | Corporate Travel vs. PREMIER FOODS | Corporate Travel vs. Cal Maine Foods |
Jupiter Fund vs. SENECA FOODS A | Jupiter Fund vs. Ebro Foods SA | Jupiter Fund vs. COREBRIDGE FINANCIAL INC | Jupiter Fund vs. PRINCIPAL FINANCIAL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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