Correlation Between Jupiter Fund and Teledyne Technologies

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

Diversification Opportunities for Jupiter Fund and Teledyne Technologies

-0.27

Correlation Coefficient

Jupiter Fund  Teledyne Technologies

Very good diversification

The 3 months correlation between Jupiter and Teledyne is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Teledyne Technologies Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teledyne Technologies 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 Teledyne Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teledyne Technologies has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Teledyne Technologies go up and down completely randomly.

Pair Corralation between Jupiter Fund and Teledyne Technologies

Assuming the 90 days horizon Jupiter Fund Management is expected to under-perform the Teledyne Technologies. In addition to that, Jupiter Fund is 2.04 times more volatile than Teledyne Technologies Incorporated. It trades about -0.06 of its total potential returns per unit of risk. Teledyne Technologies Incorporated is currently generating about 0.03 per unit of volatility. If you would invest  44,890  in Teledyne Technologies Incorporated on December 21, 2024 and sell it today you would earn a total of  970.00  from holding Teledyne Technologies Incorporated or generate 2.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Jupiter Fund Management  vs.  Teledyne Technologies Incorpor

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.

Teledyne Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Teledyne Technologies Incorporated are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Teledyne Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jupiter Fund and Teledyne Technologies

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

The idea behind Jupiter Fund Management and Teledyne Technologies Incorporated 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.