Correlation Between Jupiter Fund and Global Net
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Global Net 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 Global Net 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 Global Net Lease, you can compare the effects of market volatilities on Jupiter Fund and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Global Net.
Diversification Opportunities for Jupiter Fund and Global Net
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jupiter and Global is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Global Net go up and down completely randomly.
Pair Corralation between Jupiter Fund and Global Net
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Global Net. In addition to that, Jupiter Fund is 1.24 times more volatile than Global Net Lease. It trades about -0.02 of its total potential returns per unit of risk. Global Net Lease is currently generating about 0.02 per unit of volatility. If you would invest 807.00 in Global Net Lease on December 5, 2024 and sell it today you would earn a total of 22.00 from holding Global Net Lease or generate 2.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Jupiter Fund Management vs. Global Net Lease
Performance |
Timeline |
Jupiter Fund Management |
Global Net Lease |
Jupiter Fund and Global Net Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jupiter Fund and Global Net
The main advantage of trading using opposite Jupiter Fund and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.Jupiter Fund vs. Aeorema Communications Plc | Jupiter Fund vs. Liontrust Asset Management | Jupiter Fund vs. Verizon Communications | Jupiter Fund vs. Charter Communications Cl |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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