Correlation Between Jupai Holdings and Eagle Pointome

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

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

Diversification Opportunities for Jupai Holdings and Eagle Pointome

0.0

Correlation Coefficient

Jupai Holdings  Eagle Pointome

Pay attention - limited upside

The 3 months correlation between Jupai and Eagle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jupai Holdings Limited and Eagle Pointome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pointome and Jupai Holdings 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 Jupai Holdings Limited are associated (or correlated) with Eagle Pointome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pointome has no effect on the direction of Jupai Holdings i.e., Jupai Holdings and Eagle Pointome go up and down completely randomly.

Pair Corralation between Jupai Holdings and Eagle Pointome

If you would invest  1,484  in Eagle Pointome on December 27, 2024 and sell it today you would earn a total of  19.00  from holding Eagle Pointome or generate 1.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jupai Holdings Limited  vs.  Eagle Pointome

Jupai Holdings

Risk-Adjusted Performance

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.

Eagle Pointome

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Pointome are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, Eagle Pointome is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jupai Holdings and Eagle Pointome

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

The idea behind Jupai Holdings Limited and Eagle Pointome 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.