Correlation Between Jupai Holdings and Diamond Hill

Can any of the company-specific risk be diversified away by investing in both Jupai Holdings and Diamond Hill 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 Diamond Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jupai Holdings and Diamond Hill Investment, you can compare the effects of market volatilities on Jupai Holdings and Diamond Hill 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 Diamond Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupai Holdings and Diamond Hill.

Diversification Opportunities for Jupai Holdings and Diamond Hill

0.0

Correlation Coefficient

Jupai Holdings  Diamond Hill

Pay attention - limited upside

The 3 months correlation between Jupai and Diamond is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jupai Holdings and Diamond Hill Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Hill 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 are associated (or correlated) with Diamond Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Hill Investment has no effect on the direction of Jupai Holdings i.e., Jupai Holdings and Diamond Hill go up and down completely randomly.

Pair Corralation between Jupai Holdings and Diamond Hill

If you would invest (100.00) in Jupai Holdings on January 20, 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	0.0%
Values	Daily Returns

Jupai Holdings  vs.  Diamond Hill Investment

Jupai Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jupai Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Jupai Holdings is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Diamond Hill Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Diamond Hill Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Jupai Holdings and Diamond Hill

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

The idea behind Jupai Holdings and Diamond Hill 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.