Correlation Between Jupiter Fund and XLMedia PLC

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

Diversification Opportunities for Jupiter Fund and XLMedia PLC

-0.61

Correlation Coefficient

Jupiter Fund  XLMedia PLC

Excellent diversification

The 3 months correlation between Jupiter and XLMedia is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and XLMedia PLC go up and down completely randomly.

Pair Corralation between Jupiter Fund and XLMedia PLC

Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the XLMedia PLC. In addition to that, Jupiter Fund is 1.31 times more volatile than XLMedia PLC. It trades about -0.09 of its total potential returns per unit of risk. XLMedia PLC is currently generating about 0.11 per unit of volatility. If you would invest  895.00  in XLMedia PLC on December 24, 2024 and sell it today you would earn a total of  105.00  from holding XLMedia PLC or generate 11.73% return on investment over 90 days.

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

Jupiter Fund Management  vs.  XLMedia PLC

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

XLMedia PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in XLMedia PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, XLMedia PLC may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Jupiter Fund and XLMedia PLC

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

The idea behind Jupiter Fund Management and XLMedia PLC 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.