Correlation Between Legg Mason and Jupai Holdings
Can any of the company-specific risk be diversified away by investing in both Legg Mason 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 Legg Mason and Jupai Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason and Jupai Holdings, you can compare the effects of market volatilities on Legg Mason 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 Legg Mason with a short position of Jupai Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Jupai Holdings.
Diversification Opportunities for Legg Mason and Jupai Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Jupai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason and Jupai Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupai Holdings and Legg Mason 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 Legg Mason 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 Legg Mason i.e., Legg Mason and Jupai Holdings go up and down completely randomly.
Pair Corralation between Legg Mason and Jupai Holdings
If you would invest (100.00) in Jupai Holdings on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Jupai Holdings or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Legg Mason vs. Jupai Holdings
Performance |
Timeline |
Legg Mason |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jupai Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legg Mason and Jupai Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Legg Mason and Jupai Holdings
The main advantage of trading using opposite Legg Mason and Jupai Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason 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.Legg Mason vs. RLX Technology | Legg Mason vs. Hertz Global Holdings | Legg Mason vs. Japan Tobacco ADR | Legg Mason vs. Diageo PLC ADR |
Jupai Holdings vs. NeogamesSA | Jupai Holdings vs. Cirmaker Technology | Jupai Holdings vs. Evolution Gaming Group | Jupai Holdings vs. Ainsworth Game Technology |
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.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |