Correlation Between Legg Mason and Jupai Holdings
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Jupai Holdings 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 Legg Mason and Jupai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason and Jupai Holdings, you can compare the effects of market volatilities on Legg Mason and Jupai Holdings 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 Legg Mason with a short position of Jupai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Jupai Holdings.
Diversification Opportunities for Legg Mason and Jupai Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Jupai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason and Jupai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupai Holdings and Legg Mason 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 Legg Mason are associated (or correlated) with Jupai Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupai Holdings has no effect on the direction of Legg Mason i.e., Legg Mason and Jupai Holdings go up and down completely randomly.
Pair Corralation between Legg Mason and Jupai Holdings
If you would invest (100.00) in Jupai Holdings on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Jupai Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason vs. Jupai Holdings
Performance |
| Timeline |
| Legg Mason |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jupai Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legg Mason and Jupai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Jupai Holdings
The main advantage of trading using opposite Legg Mason and Jupai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Jupai Holdings 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 Jupai Holdings will offset losses from the drop in Jupai Holdings' long position.| Legg Mason vs. Definitive Healthcare Corp | Legg Mason vs. Jutal Offshore Oil | Legg Mason vs. Grow Solutions Holdings | Legg Mason vs. Tower Semiconductor |
| Jupai Holdings vs. Steven Madden | Jupai Holdings vs. Seadrill Limited | Jupai Holdings vs. Orbit Garant Drilling | Jupai Holdings vs. Skechers USA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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