Correlation Between Jupiter Fund and Iwatani

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

Diversification Opportunities for Jupiter Fund and Iwatani

0.08

Correlation Coefficient

Jupiter Fund  Iwatani

Significant diversification

The 3 months correlation between Jupiter and Iwatani is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Iwatani in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iwatani 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 Iwatani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iwatani has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Iwatani go up and down completely randomly.

Pair Corralation between Jupiter Fund and Iwatani

Assuming the 90 days horizon Jupiter Fund Management is expected to generate 1.45 times more return on investment than Iwatani. However, Jupiter Fund is 1.45 times more volatile than Iwatani. It trades about 0.11 of its potential returns per unit of risk. Iwatani is currently generating about -0.21 per unit of risk. If you would invest  102.00  in Jupiter Fund Management on October 11, 2024 and sell it today you would earn a total of  4.00  from holding Jupiter Fund Management or generate 3.92% return on investment over 90 days.

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

Jupiter Fund Management  vs.  Iwatani

Jupiter Fund Management

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 3 (%) 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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Iwatani

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Iwatani has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Jupiter Fund and Iwatani

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

The idea behind Jupiter Fund Management and Iwatani 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.