Correlation Between Jiayin and Vivid Seats
Can any of the company-specific risk be diversified away by investing in both Jiayin and Vivid Seats 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 Vivid Seats into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiayin Group and Vivid Seats Warrant, you can compare the effects of market volatilities on Jiayin and Vivid Seats 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 Vivid Seats. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and Vivid Seats.
Diversification Opportunities for Jiayin and Vivid Seats
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiayin and Vivid is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Vivid Seats Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivid Seats Warrant 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 Vivid Seats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivid Seats Warrant has no effect on the direction of Jiayin i.e., Jiayin and Vivid Seats go up and down completely randomly.
Pair Corralation between Jiayin and Vivid Seats
Given the investment horizon of 90 days Jiayin Group is expected to generate 0.58 times more return on investment than Vivid Seats. However, Jiayin Group is 1.73 times less risky than Vivid Seats. It trades about 0.32 of its potential returns per unit of risk. Vivid Seats Warrant is currently generating about 0.01 per unit of risk. If you would invest 690.00 in Jiayin Group on November 9, 2024 and sell it today you would earn a total of 300.00 from holding Jiayin Group or generate 43.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiayin Group vs. Vivid Seats Warrant
Performance |
| Timeline |
| Jiayin Group |
| Vivid Seats Warrant |
Jiayin and Vivid Seats Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiayin and Vivid Seats
The main advantage of trading using opposite Jiayin and Vivid Seats positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, Vivid Seats 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 Vivid Seats will offset losses from the drop in Vivid Seats' long position.| Jiayin vs. Oriental Culture Holding | Jiayin vs. Wisekey International Holding | Jiayin vs. Wah Fu Education |
| Vivid Seats vs. Vivid Seats | Vivid Seats vs. ReNew Energy Global | Vivid Seats vs. Reservoir Media Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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