Correlation Between Jupiter Green and IShares Physical

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

Diversification Opportunities for Jupiter Green and IShares Physical

0.47

Correlation Coefficient

Jupiter Green  IShares Physical

Very weak diversification

The 3 months correlation between Jupiter and IShares is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Green Investment and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver 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 IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Jupiter Green i.e., Jupiter Green and IShares Physical go up and down completely randomly.

Pair Corralation between Jupiter Green and IShares Physical

Assuming the 90 days trading horizon Jupiter Green is expected to generate 2.37 times less return on investment than IShares Physical. But when comparing it to its historical volatility, Jupiter Green Investment is 3.26 times less risky than IShares Physical. It trades about 0.2 of its potential returns per unit of risk. iShares Physical Silver is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,815  in iShares Physical Silver on December 25, 2024 and sell it today you would earn a total of  335.00  from holding iShares Physical Silver or generate 11.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.44%
Values	Daily Returns

Jupiter Green Investment  vs.  iShares Physical Silver

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.

iShares Physical Silver

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Physical Silver are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, IShares Physical may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Jupiter Green and IShares Physical

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

The idea behind Jupiter Green Investment and iShares Physical Silver 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.