Correlation Between ANGI Homeservices and Jiayin
Can any of the company-specific risk be diversified away by investing in both ANGI Homeservices and Jiayin 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 ANGI Homeservices and Jiayin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGI Homeservices and Jiayin Group, you can compare the effects of market volatilities on ANGI Homeservices and Jiayin 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 ANGI Homeservices with a short position of Jiayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGI Homeservices and Jiayin.
Diversification Opportunities for ANGI Homeservices and Jiayin
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANGI and Jiayin is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding ANGI Homeservices and Jiayin Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiayin Group and ANGI Homeservices 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 ANGI Homeservices are associated (or correlated) with Jiayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiayin Group has no effect on the direction of ANGI Homeservices i.e., ANGI Homeservices and Jiayin go up and down completely randomly.
Pair Corralation between ANGI Homeservices and Jiayin
Given the investment horizon of 90 days ANGI Homeservices is expected to under-perform the Jiayin. In addition to that, ANGI Homeservices is 1.83 times more volatile than Jiayin Group. It trades about -0.11 of its total potential returns per unit of risk. Jiayin Group is currently generating about -0.07 per unit of volatility. If you would invest 666.00 in Jiayin Group on August 28, 2024 and sell it today you would lose (45.00) from holding Jiayin Group or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGI Homeservices vs. Jiayin Group
Performance |
| Timeline |
| ANGI Homeservices |
| Jiayin Group |
ANGI Homeservices and Jiayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGI Homeservices and Jiayin
The main advantage of trading using opposite ANGI Homeservices and Jiayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGI Homeservices position performs unexpectedly, Jiayin 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 Jiayin will offset losses from the drop in Jiayin's long position.| ANGI Homeservices vs. Match Group | ANGI Homeservices vs. Outbrain | ANGI Homeservices vs. MediaAlpha | ANGI Homeservices vs. YY Inc Class |
| Jiayin vs. Oriental Culture Holding | Jiayin vs. Wisekey International Holding | Jiayin vs. Wah Fu Education |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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