Correlation Between Jupiter Fund and Fidelity National

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

Diversification Opportunities for Jupiter Fund and Fidelity National

0.05

Correlation Coefficient

Jupiter Fund  Fidelity National

Significant diversification

The 3 months correlation between Jupiter and Fidelity is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Fidelity National go up and down completely randomly.

Pair Corralation between Jupiter Fund and Fidelity National

Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 2.18 times more return on investment than Fidelity National. However, Jupiter Fund is 2.18 times more volatile than Fidelity National Information. It trades about -0.01 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.21 per unit of risk. If you would invest  8,010  in Jupiter Fund Management on October 25, 2024 and sell it today you would lose (230.00) from holding Jupiter Fund Management or give up 2.87% 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.  Fidelity National Information

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 rather sound technical and fundamental indicators, Jupiter Fund is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Fidelity National

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity National Information has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Jupiter Fund and Fidelity National

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

The idea behind Jupiter Fund Management and Fidelity National Information 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.