Correlation Between Jupiter Fund and Abrdn Property

Can any of the company-specific risk be diversified away by investing in both Jupiter Fund and Abrdn Property 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 Abrdn Property 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 abrdn Property Income, you can compare the effects of market volatilities on Jupiter Fund and Abrdn Property 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 Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Abrdn Property.

Diversification Opportunities for Jupiter Fund and Abrdn Property

-0.63

Correlation Coefficient

Jupiter Fund  Abrdn Property

Excellent diversification

The 3 months correlation between Jupiter and Abrdn is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income 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 Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Jupiter Fund i.e., Jupiter Fund and Abrdn Property go up and down completely randomly.

Pair Corralation between Jupiter Fund and Abrdn Property

Assuming the 90 days trading horizon Jupiter Fund Management is expected to generate 0.91 times more return on investment than Abrdn Property. However, Jupiter Fund Management is 1.1 times less risky than Abrdn Property. It trades about 0.4 of its potential returns per unit of risk. abrdn Property Income is currently generating about -0.03 per unit of risk. If you would invest  7,650  in Jupiter Fund Management on April 10, 2025 and sell it today you would earn a total of  3,090  from holding Jupiter Fund Management or generate 40.39% return on investment over 90 days.

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

Jupiter Fund Management  vs.  abrdn Property Income

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 31 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Jupiter Fund exhibited solid returns over the last few months and may actually be approaching a breakup point.

abrdn Property Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days abrdn Property Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Abrdn Property is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jupiter Fund and Abrdn Property

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

The idea behind Jupiter Fund Management and abrdn Property Income 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.