Correlation Between Gladstone Investment and Jupai Holdings
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment 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 Gladstone Investment and Jupai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Jupai Holdings Limited, you can compare the effects of market volatilities on Gladstone Investment 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 Gladstone Investment with a short position of Jupai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Jupai Holdings.
Diversification Opportunities for Gladstone Investment and Jupai Holdings
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and Jupai is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Jupai Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupai Holdings and Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment i.e., Gladstone Investment and Jupai Holdings go up and down completely randomly.
Pair Corralation between Gladstone Investment and Jupai Holdings
If you would invest 2,451 in Gladstone Investment on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Gladstone Investment or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Gladstone Investment vs. Jupai Holdings Limited
Performance |
| Timeline |
| Gladstone Investment |
| Jupai Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gladstone Investment and Jupai Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Jupai Holdings
The main advantage of trading using opposite Gladstone Investment and Jupai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment 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.| Gladstone Investment vs. Newtek Business Services | Gladstone Investment vs. Oxford Lane Capital | Gladstone Investment vs. Gladstone Investment | Gladstone Investment vs. Gladstone Commercial Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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