Correlation Between Navigator Global and Jupiter Energy

Can any of the company-specific risk be diversified away by investing in both Navigator Global and Jupiter Energy 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 Navigator Global and Jupiter Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Navigator Global Investments and Jupiter Energy, you can compare the effects of market volatilities on Navigator Global and Jupiter Energy 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 Navigator Global with a short position of Jupiter Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and Jupiter Energy.

Diversification Opportunities for Navigator Global and Jupiter Energy

-0.48

Correlation Coefficient

Navigator Global  Jupiter Energy

Very good diversification

The 3 months correlation between Navigator and Jupiter is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global Investments and Jupiter Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Energy and Navigator Global 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 Navigator Global Investments are associated (or correlated) with Jupiter Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Energy has no effect on the direction of Navigator Global i.e., Navigator Global and Jupiter Energy go up and down completely randomly.

Pair Corralation between Navigator Global and Jupiter Energy

Assuming the 90 days trading horizon Navigator Global Investments is expected to generate 0.72 times more return on investment than Jupiter Energy. However, Navigator Global Investments is 1.38 times less risky than Jupiter Energy. It trades about 0.01 of its potential returns per unit of risk. Jupiter Energy is currently generating about -0.08 per unit of risk. If you would invest  163.00  in Navigator Global Investments on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Navigator Global Investments or generate 0.0% return on investment over 90 days.

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

Navigator Global Investments  vs.  Jupiter Energy

Navigator Global Inv

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jupiter Energy

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Energy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Jupiter Energy may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Navigator Global and Jupiter Energy

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

The idea behind Navigator Global Investments and Jupiter Energy 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.