Correlation Between Jupiter Green and Zoom Video

Can any of the company-specific risk be diversified away by investing in both Jupiter Green and Zoom Video 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 Green and Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jupiter Green Investment and Zoom Video Communications, you can compare the effects of market volatilities on Jupiter Green and Zoom Video 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 Green with a short position of Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Green and Zoom Video.

Diversification Opportunities for Jupiter Green and Zoom Video

0.15

Correlation Coefficient

Jupiter Green  Zoom Video

Average diversification

The 3 months correlation between Jupiter and Zoom is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Green Investment and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications and Jupiter Green 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 Green Investment are associated (or correlated) with Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of Jupiter Green i.e., Jupiter Green and Zoom Video go up and down completely randomly.

Pair Corralation between Jupiter Green and Zoom Video

Assuming the 90 days trading horizon Jupiter Green Investment is expected to generate 0.24 times more return on investment than Zoom Video. However, Jupiter Green Investment is 4.22 times less risky than Zoom Video. It trades about 0.2 of its potential returns per unit of risk. Zoom Video Communications is currently generating about -0.03 per unit of risk. If you would invest  23,400  in Jupiter Green Investment on December 22, 2024 and sell it today you would earn a total of  1,100  from holding Jupiter Green Investment or generate 4.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	76.27%
Values	Daily Returns

Jupiter Green Investment  vs.  Zoom Video Communications

Jupiter Green Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Green Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Jupiter Green is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Zoom Video Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoom Video Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Zoom Video is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Jupiter Green and Zoom Video

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

The idea behind Jupiter Green Investment and Zoom Video Communications 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.