Correlation Between Jupiter Fund and Seraphim Space

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

Diversification Opportunities for Jupiter Fund and Seraphim Space

0.65

Correlation Coefficient

Jupiter Fund  Seraphim Space

Poor diversification

The 3 months correlation between Jupiter and Seraphim is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Seraphim Space Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seraphim Space Investment 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 Seraphim Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seraphim Space Investment has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Seraphim Space go up and down completely randomly.

Pair Corralation between Jupiter Fund and Seraphim Space

Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Seraphim Space. In addition to that, Jupiter Fund is 1.13 times more volatile than Seraphim Space Investment. It trades about -0.01 of its total potential returns per unit of risk. Seraphim Space Investment is currently generating about 0.0 per unit of volatility. If you would invest  5,990  in Seraphim Space Investment on November 28, 2024 and sell it today you would lose (90.00) from holding Seraphim Space Investment or give up 1.5% of portfolio value over 90 days.

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

Jupiter Fund Management  vs.  Seraphim Space Investment

Jupiter Fund Management

Risk-Adjusted Performance

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.

Seraphim Space Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seraphim Space Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Seraphim Space 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 Seraphim Space

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

The idea behind Jupiter Fund Management and Seraphim Space Investment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.