Correlation Between Fiverr International and Jiayin
Can any of the company-specific risk be diversified away by investing in both Fiverr International 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 Fiverr International and Jiayin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiverr International and Jiayin Group, you can compare the effects of market volatilities on Fiverr International 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 Fiverr International with a short position of Jiayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiverr International and Jiayin.
Diversification Opportunities for Fiverr International and Jiayin
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fiverr and Jiayin is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fiverr International and Jiayin Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiayin Group and Fiverr 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 Fiverr International 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 Fiverr International i.e., Fiverr International and Jiayin go up and down completely randomly.
Pair Corralation between Fiverr International and Jiayin
Given the investment horizon of 90 days Fiverr International is expected to generate 0.91 times more return on investment than Jiayin. However, Fiverr International is 1.1 times less risky than Jiayin. It trades about 0.16 of its potential returns per unit of risk. Jiayin Group is currently generating about 0.08 per unit of risk. If you would invest 2,428 in Fiverr International on August 28, 2024 and sell it today you would earn a total of 891.00 from holding Fiverr International or generate 36.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiverr International vs. Jiayin Group
Performance |
| Timeline |
| Fiverr International |
| Jiayin Group |
Fiverr International and Jiayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiverr International and Jiayin
The main advantage of trading using opposite Fiverr International and Jiayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiverr International 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.| Fiverr International vs. Snap Inc | Fiverr International vs. Twilio Inc | Fiverr International vs. Spotify Technology SA | Fiverr International vs. Baidu Inc |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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