Correlation Between Marygold Companies and Jupai Holdings

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

By analyzing existing cross correlation between Marygold Companies and Jupai Holdings Limited, you can compare the effects of market volatilities on Marygold Companies 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 Marygold Companies with a short position of Jupai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marygold Companies and Jupai Holdings.

Diversification Opportunities for Marygold Companies and Jupai Holdings

-0.5

Correlation Coefficient

Marygold Companies  Jupai Holdings

Very good diversification

The 3 months correlation between Marygold and Jupai is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Marygold Companies and Jupai Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupai Holdings and Marygold Companies 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 Marygold Companies 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 Marygold Companies i.e., Marygold Companies and Jupai Holdings go up and down completely randomly.

Pair Corralation between Marygold Companies and Jupai Holdings

If you would invest  3.89  in Jupai Holdings Limited on July 18, 2024 and sell it today you would earn a total of  0.00  from holding Jupai Holdings Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.35%
Values	Daily Returns

Marygold Companies  vs.  Jupai Holdings Limited

Marygold Companies

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Marygold Companies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent essential indicators, Marygold Companies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Jupai Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jupai Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Jupai Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Marygold Companies and Jupai Holdings

The main advantage of trading using opposite Marygold Companies and Jupai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marygold Companies 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.

The idea behind Marygold Companies and Jupai Holdings Limited 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.