Correlation Between Jupai Holdings and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Jupai Holdings and Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment, you can compare the effects of market volatilities on Jupai Holdings and Gladstone Investment 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 Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupai Holdings and Gladstone Investment.
Diversification Opportunities for Jupai Holdings and Gladstone Investment
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupai and Gladstone is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jupai Holdings Limited and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment 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 Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of Jupai Holdings i.e., Jupai Holdings and Gladstone Investment go up and down completely randomly.
Pair Corralation between Jupai Holdings and Gladstone Investment
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 |
Jupai Holdings Limited vs. Gladstone Investment
Performance |
| Timeline |
| Jupai Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gladstone Investment |
Jupai Holdings and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupai Holdings and Gladstone Investment
The main advantage of trading using opposite Jupai Holdings and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupai Holdings position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.The idea behind Jupai Holdings Limited and Gladstone Investment 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.| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |