Correlation Between Dunxin Financial and Yirendai
Can any of the company-specific risk be diversified away by investing in both Dunxin Financial and Yirendai 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 Dunxin Financial and Yirendai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunxin Financial Holdings and Yirendai, you can compare the effects of market volatilities on Dunxin Financial and Yirendai 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 Dunxin Financial with a short position of Yirendai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunxin Financial and Yirendai.
Diversification Opportunities for Dunxin Financial and Yirendai
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunxin and Yirendai is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dunxin Financial Holdings and Yirendai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yirendai and Dunxin Financial 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 Dunxin Financial Holdings are associated (or correlated) with Yirendai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yirendai has no effect on the direction of Dunxin Financial i.e., Dunxin Financial and Yirendai go up and down completely randomly.
Pair Corralation between Dunxin Financial and Yirendai
If you would invest 3.50 in Dunxin Financial Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Dunxin Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Dunxin Financial Holdings vs. Yirendai
Performance |
| Timeline |
| Dunxin Financial Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yirendai |
Dunxin Financial and Yirendai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunxin Financial and Yirendai
The main advantage of trading using opposite Dunxin Financial and Yirendai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunxin Financial position performs unexpectedly, Yirendai 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 Yirendai will offset losses from the drop in Yirendai's long position.| Dunxin Financial vs. MDJM | Dunxin Financial vs. ReTo Eco Solutions | Dunxin Financial vs. Four Seasons Education | Dunxin Financial vs. Mercurity Fintech Holding |
| Yirendai vs. Lexinfintech Holdings | Yirendai vs. FinVolution Group | Yirendai vs. 360 Finance | Yirendai vs. Navient 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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