Correlation Between Jupiter Fund and Scientific Games

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

Diversification Opportunities for Jupiter Fund and Scientific Games

-0.48

Correlation Coefficient

Jupiter Fund  Scientific Games

Very good diversification

The 3 months correlation between Jupiter and Scientific is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Scientific Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Games 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 Scientific Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Games has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Scientific Games go up and down completely randomly.

Pair Corralation between Jupiter Fund and Scientific Games

Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the Scientific Games. In addition to that, Jupiter Fund is 1.22 times more volatile than Scientific Games. It trades about -0.01 of its total potential returns per unit of risk. Scientific Games is currently generating about 0.05 per unit of volatility. If you would invest  5,650  in Scientific Games on October 11, 2024 and sell it today you would earn a total of  2,500  from holding Scientific Games or generate 44.25% return on investment over 90 days.

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

Jupiter Fund Management  vs.  Scientific Games

Jupiter Fund Management

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 4 (%) 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.

Scientific Games

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jupiter Fund and Scientific Games

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

The idea behind Jupiter Fund Management and Scientific Games 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.