Correlation Between Guangdong Investment and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Guangdong Investment and Jupiter Fund 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 Guangdong Investment and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guangdong Investment Limited and Jupiter Fund Management, you can compare the effects of market volatilities on Guangdong Investment and Jupiter Fund 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 Guangdong Investment with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and Jupiter Fund.
Diversification Opportunities for Guangdong Investment and Jupiter Fund
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Jupiter is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and Guangdong Investment 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 Guangdong Investment Limited are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and Jupiter Fund go up and down completely randomly.
Pair Corralation between Guangdong Investment and Jupiter Fund
Assuming the 90 days horizon Guangdong Investment is expected to generate 1.51 times less return on investment than Jupiter Fund. In addition to that, Guangdong Investment is 1.09 times more volatile than Jupiter Fund Management. It trades about 0.07 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.11 per unit of volatility. If you would invest 102.00 in Jupiter Fund Management on October 12, 2024 and sell it today you would earn a total of 5.00 from holding Jupiter Fund Management or generate 4.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Investment Limited vs. Jupiter Fund Management
Performance |
Timeline |
Guangdong Investment |
Jupiter Fund Management |
Guangdong Investment and Jupiter Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Investment and Jupiter Fund
The main advantage of trading using opposite Guangdong Investment and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.The idea behind Guangdong Investment Limited and Jupiter Fund Management 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.
Jupiter Fund vs. Zoom Video Communications | Jupiter Fund vs. Firan Technology Group | Jupiter Fund vs. Casio Computer CoLtd | Jupiter Fund vs. Easy Software AG |
Check out your portfolio center.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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |