Correlation Between Tatton Asset and Jupiter Fund

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

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

Diversification Opportunities for Tatton Asset and Jupiter Fund

-0.5

Correlation Coefficient

Tatton Asset  Jupiter Fund

Very good diversification

The 3 months correlation between Tatton and Jupiter is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tatton Asset Management 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 Tatton Asset 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 Tatton Asset Management 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 Tatton Asset i.e., Tatton Asset and Jupiter Fund go up and down completely randomly.

Pair Corralation between Tatton Asset and Jupiter Fund

Assuming the 90 days trading horizon Tatton Asset Management is expected to under-perform the Jupiter Fund. In addition to that, Tatton Asset is 1.18 times more volatile than Jupiter Fund Management. It trades about 0.0 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.0 per unit of volatility. If you would invest  8,650  in Jupiter Fund Management on September 23, 2024 and sell it today you would lose (70.00) from holding Jupiter Fund Management or give up 0.81% of portfolio value over 90 days.

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

Tatton Asset Management  vs.  Jupiter Fund Management

Tatton Asset Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tatton Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Tatton Asset is not utilizing all of its potentials. The newest 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 Tatton Asset and Jupiter Fund

The main advantage of trading using opposite Tatton Asset and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tatton Asset 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 Tatton Asset Management 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..