Correlation Between Jupiter Fund and Jacquet Metal

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

Diversification Opportunities for Jupiter Fund and Jacquet Metal

0.33

Correlation Coefficient

Jupiter Fund  Jacquet Metal

Weak diversification

The 3 months correlation between Jupiter and Jacquet is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Jacquet Metal go up and down completely randomly.

Pair Corralation between Jupiter Fund and Jacquet Metal

Assuming the 90 days horizon Jupiter Fund is expected to generate 5.61 times less return on investment than Jacquet Metal. In addition to that, Jupiter Fund is 1.09 times more volatile than Jacquet Metal Service. It trades about 0.02 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.11 per unit of volatility. If you would invest  1,566  in Jacquet Metal Service on October 3, 2024 and sell it today you would earn a total of  154.00  from holding Jacquet Metal Service or generate 9.83% return on investment over 90 days.

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

Jupiter Fund Management  vs.  Jacquet Metal Service

Jupiter Fund Management

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Jupiter Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Jacquet Metal Service

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jacquet Metal Service are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jacquet Metal may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Jupiter Fund and Jacquet Metal

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

The idea behind Jupiter Fund Management and Jacquet Metal Service 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.