Correlation Between T-MOBILE and Jupiter Fund

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

By analyzing existing cross correlation between T MOBILE INCDL 00001 and Jupiter Fund Management, you can compare the effects of market volatilities on T-MOBILE and Jupiter Fund 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 T-MOBILE with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-MOBILE and Jupiter Fund.

Diversification Opportunities for T-MOBILE and Jupiter Fund

-0.43

Correlation Coefficient

T-MOBILE  Jupiter Fund

Very good diversification

The 3 months correlation between T-MOBILE and Jupiter is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE INCDL 00001 and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and T-MOBILE 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 T MOBILE INCDL 00001 are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of T-MOBILE i.e., T-MOBILE and Jupiter Fund go up and down completely randomly.

Pair Corralation between T-MOBILE and Jupiter Fund

Assuming the 90 days trading horizon T MOBILE INCDL 00001 is expected to generate 0.69 times more return on investment than Jupiter Fund. However, T MOBILE INCDL 00001 is 1.45 times less risky than Jupiter Fund. It trades about 0.31 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.03 per unit of risk. If you would invest  18,155  in T MOBILE INCDL 00001 on September 4, 2024 and sell it today you would earn a total of  5,180  from holding T MOBILE INCDL 00001 or generate 28.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

T MOBILE INCDL 00001  vs.  Jupiter Fund Management

T MOBILE INCDL

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T MOBILE INCDL 00001 are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, T-MOBILE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Jupiter Fund Management

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Jupiter Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with T-MOBILE and Jupiter Fund

The main advantage of trading using opposite T-MOBILE and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-MOBILE position performs unexpectedly, Jupiter Fund 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 Fund will offset losses from the drop in Jupiter Fund's long position.

The idea behind T MOBILE INCDL 00001 and Jupiter Fund Management 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..