Correlation Between Enova International and Jianpu Technology
Can any of the company-specific risk be diversified away by investing in both Enova International and Jianpu Technology 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 Enova International and Jianpu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enova International and Jianpu Technology, you can compare the effects of market volatilities on Enova International and Jianpu Technology 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 Enova International with a short position of Jianpu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enova International and Jianpu Technology.
Diversification Opportunities for Enova International and Jianpu Technology
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Enova and Jianpu is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Enova International and Jianpu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jianpu Technology and Enova International 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 Enova International are associated (or correlated) with Jianpu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jianpu Technology has no effect on the direction of Enova International i.e., Enova International and Jianpu Technology go up and down completely randomly.
Pair Corralation between Enova International and Jianpu Technology
If you would invest 8,697 in Enova International on August 28, 2024 and sell it today you would earn a total of 1,975 from holding Enova International or generate 22.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Enova International vs. Jianpu Technology
Performance |
| Timeline |
| Enova International |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enova International and Jianpu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enova International and Jianpu Technology
The main advantage of trading using opposite Enova International and Jianpu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enova International position performs unexpectedly, Jianpu Technology 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 Jianpu Technology will offset losses from the drop in Jianpu Technology's long position.| Enova International vs. SLM Corp | Enova International vs. Orix Corp Ads | Enova International vs. FirstCash | Enova International vs. Medallion Financial Corp |
| Jianpu Technology vs. Associates First Capital | Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |