Correlation Between Deutsche Bank and Jupai Holdings
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank 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 Deutsche Bank and Jupai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank AG and Jupai Holdings Limited, you can compare the effects of market volatilities on Deutsche Bank 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 Deutsche Bank with a short position of Jupai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Jupai Holdings.
Diversification Opportunities for Deutsche Bank and Jupai Holdings
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and Jupai is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Jupai Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupai Holdings and Deutsche Bank 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 Deutsche Bank AG 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 Deutsche Bank i.e., Deutsche Bank and Jupai Holdings go up and down completely randomly.
Pair Corralation between Deutsche Bank and Jupai Holdings
If you would invest 3.89 in Jupai Holdings Limited on August 27, 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 | 4.76% |
| Values | Daily Returns |
Deutsche Bank AG vs. Jupai Holdings Limited
Performance |
| Timeline |
| Deutsche Bank AG |
| Jupai Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Deutsche Bank and Jupai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Jupai Holdings
The main advantage of trading using opposite Deutsche Bank and Jupai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank 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.| Deutsche Bank vs. Banco Bradesco SA | Deutsche Bank vs. Itau Unibanco Banco | Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Banco Santander Brasil |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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