Correlation Between Jiayin and Liberty Tripadvisor
Can any of the company-specific risk be diversified away by investing in both Jiayin and Liberty Tripadvisor 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 Liberty Tripadvisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiayin Group and Liberty Tripadvisor Holdings, you can compare the effects of market volatilities on Jiayin and Liberty Tripadvisor 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 Liberty Tripadvisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and Liberty Tripadvisor.
Diversification Opportunities for Jiayin and Liberty Tripadvisor
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiayin and Liberty is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Liberty Tripadvisor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Tripadvisor 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 Liberty Tripadvisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Tripadvisor has no effect on the direction of Jiayin i.e., Jiayin and Liberty Tripadvisor go up and down completely randomly.
Pair Corralation between Jiayin and Liberty Tripadvisor
Given the investment horizon of 90 days Jiayin is expected to generate 1.15 times less return on investment than Liberty Tripadvisor. But when comparing it to its historical volatility, Jiayin Group is 1.23 times less risky than Liberty Tripadvisor. It trades about 0.08 of its potential returns per unit of risk. Liberty Tripadvisor Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,471 in Liberty Tripadvisor Holdings on August 29, 2024 and sell it today you would earn a total of 1,292 from holding Liberty Tripadvisor Holdings or generate 52.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.52% |
| Values | Daily Returns |
Jiayin Group vs. Liberty Tripadvisor Holdings
Performance |
| Timeline |
| Jiayin Group |
| Liberty Tripadvisor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jiayin and Liberty Tripadvisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiayin and Liberty Tripadvisor
The main advantage of trading using opposite Jiayin and Liberty Tripadvisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, Liberty Tripadvisor 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 Liberty Tripadvisor will offset losses from the drop in Liberty Tripadvisor's long position.| Jiayin vs. Oriental Culture Holding | Jiayin vs. Wisekey International Holding | Jiayin vs. Wah Fu Education |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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