Correlation Between Asset Entities and Jiayin
Can any of the company-specific risk be diversified away by investing in both Asset Entities 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 Asset Entities and Jiayin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asset Entities Class and Jiayin Group, you can compare the effects of market volatilities on Asset Entities 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 Asset Entities with a short position of Jiayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asset Entities and Jiayin.
Diversification Opportunities for Asset Entities and Jiayin
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asset and Jiayin is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Asset Entities Class and Jiayin Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiayin Group and Asset Entities 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 Asset Entities Class 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 Asset Entities i.e., Asset Entities and Jiayin go up and down completely randomly.
Pair Corralation between Asset Entities and Jiayin
Given the investment horizon of 90 days Asset Entities is expected to generate 1.21 times less return on investment than Jiayin. In addition to that, Asset Entities is 3.61 times more volatile than Jiayin Group. It trades about 0.01 of its total potential returns per unit of risk. Jiayin Group is currently generating about 0.05 per unit of volatility. If you would invest 470.00 in Jiayin Group on September 12, 2024 and sell it today you would earn a total of 185.00 from holding Jiayin Group or generate 39.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asset Entities Class vs. Jiayin Group
Performance |
| Timeline |
| Asset Entities Class |
| Jiayin Group |
Asset Entities and Jiayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asset Entities and Jiayin
The main advantage of trading using opposite Asset Entities and Jiayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asset Entities 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.| Asset Entities vs. Twilio Inc | Asset Entities vs. Meta Platforms | Asset Entities vs. Alphabet Inc Class C | Asset Entities vs. Alphabet Inc Class A |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |