Correlation Between Marks and Jupiter Fund

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

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

Diversification Opportunities for Marks and Jupiter Fund

0.13

Correlation Coefficient

Marks  Jupiter Fund

Average diversification

The 3 months correlation between Marks and Jupiter is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Marks and Spencer 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 Marks 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 Marks and Spencer 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 Marks i.e., Marks and Jupiter Fund go up and down completely randomly.

Pair Corralation between Marks and Jupiter Fund

Assuming the 90 days trading horizon Marks and Spencer is expected to generate 1.04 times more return on investment than Jupiter Fund. However, Marks is 1.04 times more volatile than Jupiter Fund Management. It trades about 0.02 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.0 per unit of risk. If you would invest  37,502  in Marks and Spencer on September 23, 2024 and sell it today you would earn a total of  438.00  from holding Marks and Spencer or generate 1.17% return on investment over 90 days.

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

Marks and Spencer  vs.  Jupiter Fund Management

Marks and Spencer

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marks and Spencer are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Marks is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Jupiter Fund Management

Risk-Adjusted Performance

0 of 100

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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Marks and Jupiter Fund

The main advantage of trading using opposite Marks and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks 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 Marks and Spencer 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.