Correlation Between Jupiter Fund and Omega Healthcare

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

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

Diversification Opportunities for Jupiter Fund and Omega Healthcare

0.21

Correlation Coefficient

Jupiter Fund  Omega Healthcare

Modest diversification

The 3 months correlation between Jupiter and Omega is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Omega Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Healthcare Inv and Jupiter Fund 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 Fund Management are associated (or correlated) with Omega Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Healthcare Inv has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Omega Healthcare go up and down completely randomly.

Pair Corralation between Jupiter Fund and Omega Healthcare

Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 1.75 times more return on investment than Omega Healthcare. However, Jupiter Fund is 1.75 times more volatile than Omega Healthcare Investors. It trades about 0.46 of its potential returns per unit of risk. Omega Healthcare Investors is currently generating about 0.02 per unit of risk. 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	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Jupiter Fund Management  vs.  Omega Healthcare 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.

Omega Healthcare Inv

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Omega Healthcare Investors are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Omega Healthcare is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Jupiter Fund and Omega Healthcare

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

The idea behind Jupiter Fund Management and Omega Healthcare Investors 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.