Correlation Between Jupiter Marine and Air Products

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

By analyzing existing cross correlation between Jupiter Marine International and Air Products and, you can compare the effects of market volatilities on Jupiter Marine and Air Products 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 Marine with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Marine and Air Products.

Diversification Opportunities for Jupiter Marine and Air Products

0.0

Correlation Coefficient

Jupiter Marine  Air Products

Pay attention - limited upside

The 3 months correlation between Jupiter and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Marine International and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and Jupiter Marine 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 Marine International are associated (or correlated) with Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products has no effect on the direction of Jupiter Marine i.e., Jupiter Marine and Air Products go up and down completely randomly.

Pair Corralation between Jupiter Marine and Air Products

If you would invest  0.01  in Jupiter Marine International on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Jupiter Marine International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jupiter Marine International  vs.  Air Products and

Jupiter Marine Inter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jupiter Marine International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Jupiter Marine is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Air Products

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Air Products and are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Air Products may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jupiter Marine and Air Products

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

The idea behind Jupiter Marine International and Air Products and 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.