Correlation Between Jupiter Energy and IND+COMMBK CHINA

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

By analyzing existing cross correlation between Jupiter Energy Limited and INDCOMMBK CHINA ADR20, you can compare the effects of market volatilities on Jupiter Energy and IND+COMMBK CHINA 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 Jupiter Energy with a short position of IND+COMMBK CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Energy and IND+COMMBK CHINA.

Diversification Opportunities for Jupiter Energy and IND+COMMBK CHINA

-0.22

Correlation Coefficient

Jupiter Energy  IND+COMMBK CHINA

Very good diversification

The 3 months correlation between Jupiter and IND+COMMBK is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Energy Limited and INDCOMMBK CHINA ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDCOMMBK CHINA ADR20 and Jupiter Energy 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 Jupiter Energy Limited are associated (or correlated) with IND+COMMBK CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDCOMMBK CHINA ADR20 has no effect on the direction of Jupiter Energy i.e., Jupiter Energy and IND+COMMBK CHINA go up and down completely randomly.

Pair Corralation between Jupiter Energy and IND+COMMBK CHINA

Assuming the 90 days horizon Jupiter Energy Limited is expected to under-perform the IND+COMMBK CHINA. In addition to that, Jupiter Energy is 5.24 times more volatile than INDCOMMBK CHINA ADR20. It trades about -0.02 of its total potential returns per unit of risk. INDCOMMBK CHINA ADR20 is currently generating about 0.1 per unit of volatility. If you would invest  1,156  in INDCOMMBK CHINA ADR20 on April 23, 2025 and sell it today you would earn a total of  154.00  from holding INDCOMMBK CHINA ADR20 or generate 13.32% return on investment over 90 days.

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

Jupiter Energy Limited  vs.  INDCOMMBK CHINA ADR20

Jupiter Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jupiter Energy Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

INDCOMMBK CHINA ADR20

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INDCOMMBK CHINA ADR20 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady forward-looking signals, IND+COMMBK CHINA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jupiter Energy and IND+COMMBK CHINA

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

The idea behind Jupiter Energy Limited and INDCOMMBK CHINA ADR20 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.