Correlation Between Jupiter Fund and EMERSON ELECTRIC

Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and EMERSON ELECTRIC 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 EMERSON ELECTRIC 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 EMERSON ELECTRIC, you can compare the effects of market volatilities on Jupiter Fund and EMERSON ELECTRIC 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 EMERSON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and EMERSON ELECTRIC.

Diversification Opportunities for Jupiter Fund and EMERSON ELECTRIC

0.0

Correlation Coefficient

Jupiter Fund  EMERSON ELECTRIC

Pay attention - limited upside

The 3 months correlation between Jupiter and EMERSON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and EMERSON ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERSON ELECTRIC 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 EMERSON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERSON ELECTRIC has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and EMERSON ELECTRIC go up and down completely randomly.

Pair Corralation between Jupiter Fund and EMERSON ELECTRIC

If you would invest  0.00  in EMERSON ELECTRIC on December 21, 2024 and sell it today you would earn a total of  0.00  from holding EMERSON ELECTRIC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Jupiter Fund Management  vs.  EMERSON ELECTRIC

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. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

EMERSON ELECTRIC

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Jupiter Fund and EMERSON ELECTRIC

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

The idea behind Jupiter Fund Management and EMERSON ELECTRIC 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.