Correlation Between Jupiter and SPACE

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

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

Diversification Opportunities for Jupiter and SPACE

0.88

Correlation Coefficient

Jupiter  SPACE

Very poor diversification

The 3 months correlation between Jupiter and SPACE is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE 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 SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of Jupiter i.e., Jupiter and SPACE go up and down completely randomly.

Pair Corralation between Jupiter and SPACE

Assuming the 90 days trading horizon Jupiter is expected to generate 1.03 times more return on investment than SPACE. However, Jupiter is 1.03 times more volatile than SPACE. It trades about 0.32 of its potential returns per unit of risk. SPACE is currently generating about 0.22 per unit of risk. If you would invest  39.00  in Jupiter on February 9, 2025 and sell it today you would earn a total of  18.00  from holding Jupiter or generate 46.15% return on investment over 90 days.

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

Jupiter  vs.  SPACE

Jupiter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jupiter has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for Jupiter shareholders.

SPACE

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SPACE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, SPACE may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Jupiter and SPACE

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

The idea behind Jupiter and SPACE 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.