Correlation Between Jiayin and Alphabet
Can any of the company-specific risk be diversified away by investing in both Jiayin and Alphabet 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 Jiayin and Alphabet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiayin Group and Alphabet Inc Class A, you can compare the effects of market volatilities on Jiayin and Alphabet 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 Jiayin with a short position of Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and Alphabet.
Diversification Opportunities for Jiayin and Alphabet
Very weak diversification
The 3 months correlation between Jiayin and Alphabet is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Alphabet Inc Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Class A and Jiayin 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 Jiayin Group are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Class A has no effect on the direction of Jiayin i.e., Jiayin and Alphabet go up and down completely randomly.
Pair Corralation between Jiayin and Alphabet
Given the investment horizon of 90 days Jiayin Group is expected to generate 2.41 times more return on investment than Alphabet. However, Jiayin is 2.41 times more volatile than Alphabet Inc Class A. It trades about 0.02 of its potential returns per unit of risk. Alphabet Inc Class A is currently generating about 0.0 per unit of risk. If you would invest 602.00 in Jiayin Group on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Jiayin Group or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiayin Group vs. Alphabet Inc Class A
Performance |
| Timeline |
| Jiayin Group |
| Alphabet Class A |
Jiayin and Alphabet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiayin and Alphabet
The main advantage of trading using opposite Jiayin and Alphabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, Alphabet 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 Alphabet will offset losses from the drop in Alphabet's long position.| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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