Correlation Between Jupiter Fund and ASML Holding

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

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

Diversification Opportunities for Jupiter Fund and ASML Holding

0.59

Correlation Coefficient

Jupiter Fund  ASML Holding

Very weak diversification

The 3 months correlation between Jupiter and ASML is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and ASML Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML Holding NV and Jupiter Fund 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 Jupiter Fund Management are associated (or correlated) with ASML Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML Holding NV has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and ASML Holding go up and down completely randomly.

Pair Corralation between Jupiter Fund and ASML Holding

Assuming the 90 days horizon Jupiter Fund Management is expected to generate 0.59 times more return on investment than ASML Holding. However, Jupiter Fund Management is 1.69 times less risky than ASML Holding. It trades about 0.09 of its potential returns per unit of risk. ASML Holding NV is currently generating about -0.03 per unit of risk. If you would invest  94.00  in Jupiter Fund Management on September 12, 2024 and sell it today you would earn a total of  9.00  from holding Jupiter Fund Management or generate 9.57% return on investment over 90 days.

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

Jupiter Fund Management  vs.  ASML Holding NV

Jupiter Fund Management

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jupiter Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ASML Holding NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASML Holding NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, ASML Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jupiter Fund and ASML Holding

The main advantage of trading using opposite Jupiter Fund and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, ASML Holding 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 ASML Holding will offset losses from the drop in ASML Holding's long position.

The idea behind Jupiter Fund Management and ASML Holding NV 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.