Correlation Between Getty Images and Jiayin
Can any of the company-specific risk be diversified away by investing in both Getty Images 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 Getty Images and Jiayin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Images Holdings and Jiayin Group, you can compare the effects of market volatilities on Getty Images 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 Getty Images with a short position of Jiayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Jiayin.
Diversification Opportunities for Getty Images and Jiayin
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Getty and Jiayin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Jiayin Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiayin Group and Getty Images 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 Getty Images Holdings 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 Getty Images i.e., Getty Images and Jiayin go up and down completely randomly.
Pair Corralation between Getty Images and Jiayin
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Jiayin. In addition to that, Getty Images is 1.17 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. Jiayin Group
Performance |
| Timeline |
| Getty Images Holdings |
| Jiayin Group |
Getty Images and Jiayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Jiayin
The main advantage of trading using opposite Getty Images and Jiayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images 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.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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