Correlation Between Jupiter Fund and Deutsche Post

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

Diversification Opportunities for Jupiter Fund and Deutsche Post

0.08

Correlation Coefficient

Jupiter Fund  Deutsche Post

Significant diversification

The 3 months correlation between Jupiter and Deutsche is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Deutsche Post go up and down completely randomly.

Pair Corralation between Jupiter Fund and Deutsche Post

Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Deutsche Post. In addition to that, Jupiter Fund is 1.38 times more volatile than Deutsche Post AG. It trades about -0.1 of its total potential returns per unit of risk. Deutsche Post AG is currently generating about -0.05 per unit of volatility. If you would invest  3,750  in Deutsche Post AG on October 22, 2024 and sell it today you would lose (207.00) from holding Deutsche Post AG or give up 5.52% of portfolio value over 90 days.

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

Jupiter Fund Management  vs.  Deutsche Post AG

Jupiter Fund Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jupiter Fund Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Deutsche Post AG

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jupiter Fund and Deutsche Post

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

The idea behind Jupiter Fund Management and Deutsche Post AG 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.