Correlation Between Jupiter and Synthetix

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

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

Diversification Opportunities for Jupiter and Synthetix

0.75

Correlation Coefficient

Jupiter  Synthetix

Poor diversification

The 3 months correlation between Jupiter and Synthetix is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter and Synthetix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthetix and Jupiter 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 are associated (or correlated) with Synthetix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synthetix has no effect on the direction of Jupiter i.e., Jupiter and Synthetix go up and down completely randomly.

Pair Corralation between Jupiter and Synthetix

Assuming the 90 days trading horizon Jupiter is expected to generate 1.08 times more return on investment than Synthetix. However, Jupiter is 1.08 times more volatile than Synthetix. It trades about 0.09 of its potential returns per unit of risk. Synthetix is currently generating about 0.03 per unit of risk. If you would invest  44.00  in Jupiter on April 21, 2025 and sell it today you would earn a total of  11.00  from holding Jupiter or generate 25.0% return on investment over 90 days.

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

Jupiter  vs.  Synthetix

Jupiter

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Jupiter exhibited solid returns over the last few months and may actually be approaching a breakup point.

Synthetix

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Synthetix are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Synthetix may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jupiter and Synthetix

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

The idea behind Jupiter and Synthetix 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.