Correlation Between Jupai Holdings and Eagle Point

Can any of the company-specific risk be diversified away by investing in both Jupai Holdings and Eagle Point 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 Point 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 Point Income, you can compare the effects of market volatilities on Jupai Holdings and Eagle Point 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 Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupai Holdings and Eagle Point.

Diversification Opportunities for Jupai Holdings and Eagle Point

0.0

Correlation Coefficient

Jupai Holdings  Eagle Point

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 Point Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Income 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 Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Income has no effect on the direction of Jupai Holdings i.e., Jupai Holdings and Eagle Point go up and down completely randomly.

Pair Corralation between Jupai Holdings and Eagle Point

If you would invest  2,348  in Eagle Point Income on December 28, 2024 and sell it today you would earn a total of  78.50  from holding Eagle Point Income or generate 3.34% 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 Point Income

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 Point Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Point Income are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Eagle Point is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jupai Holdings and Eagle Point

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

The idea behind Jupai Holdings Limited and Eagle Point Income 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.