Correlation Between CHAMPION IRON and Jupiter Fund

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

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

Diversification Opportunities for CHAMPION IRON and Jupiter Fund

0.09

Correlation Coefficient

CHAMPION IRON  Jupiter Fund

Significant diversification

The 3 months correlation between CHAMPION and Jupiter is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CHAMPION IRON 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 CHAMPION IRON 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 CHAMPION IRON 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 CHAMPION IRON i.e., CHAMPION IRON and Jupiter Fund go up and down completely randomly.

Pair Corralation between CHAMPION IRON and Jupiter Fund

Assuming the 90 days trading horizon CHAMPION IRON is expected to generate 4.34 times less return on investment than Jupiter Fund. But when comparing it to its historical volatility, CHAMPION IRON is 1.16 times less risky than Jupiter Fund. It trades about 0.09 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  81.00  in Jupiter Fund Management on April 23, 2025 and sell it today you would earn a total of  65.00  from holding Jupiter Fund Management or generate 80.25% return on investment over 90 days.

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

CHAMPION IRON  vs.  Jupiter Fund Management

CHAMPION IRON

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CHAMPION IRON are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CHAMPION IRON reported solid returns over the last few months and may actually be approaching a breakup point.

Jupiter Fund Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jupiter Fund reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CHAMPION IRON and Jupiter Fund

The main advantage of trading using opposite CHAMPION IRON and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAMPION IRON 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 CHAMPION IRON 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.