Correlation Between Jupiter Fund and CSSC Offshore

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

Diversification Opportunities for Jupiter Fund and CSSC Offshore

-0.02

Correlation Coefficient

Jupiter Fund  CSSC Offshore

Good diversification

The 3 months correlation between Jupiter and CSSC is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and CSSC Offshore go up and down completely randomly.

Pair Corralation between Jupiter Fund and CSSC Offshore

Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the CSSC Offshore. In addition to that, Jupiter Fund is 2.18 times more volatile than CSSC Offshore Marine. It trades about -0.32 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.44 per unit of volatility. If you would invest  137.00  in CSSC Offshore Marine on October 25, 2024 and sell it today you would lose (15.00) from holding CSSC Offshore Marine or give up 10.95% of portfolio value over 90 days.

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

Jupiter Fund Management  vs.  CSSC Offshore Marine

Jupiter Fund Management

Risk-Adjusted Performance

0 of 100

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.

CSSC Offshore Marine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CSSC Offshore Marine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Jupiter Fund and CSSC Offshore

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

The idea behind Jupiter Fund Management and CSSC Offshore Marine 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.