Correlation Between Compal Electronics and Jupiter Fund

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

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

Diversification Opportunities for Compal Electronics and Jupiter Fund

0.0

Correlation Coefficient

Compal Electronics  Jupiter Fund

Pay attention - limited upside

The 3 months correlation between Compal and Jupiter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compal Electronics GDR 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 Compal Electronics 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 Compal Electronics GDR 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 Compal Electronics i.e., Compal Electronics and Jupiter Fund go up and down completely randomly.

Pair Corralation between Compal Electronics and Jupiter Fund

If you would invest  7,040  in Jupiter Fund Management on April 20, 2025 and sell it today you would earn a total of  6,100  from holding Jupiter Fund Management or generate 86.65% return on investment over 90 days.

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

Compal Electronics GDR  vs.  Jupiter Fund Management

Compal Electronics GDR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Compal Electronics GDR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Compal Electronics is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Jupiter Fund Management

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 36 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Jupiter Fund exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Compal Electronics and Jupiter Fund

The main advantage of trading using opposite Compal Electronics and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compal Electronics 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 Compal Electronics GDR 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.