Correlation Between Jianpu Technology and Dunxin Financial
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and Dunxin Financial 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 Jianpu Technology and Dunxin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and Dunxin Financial Holdings, you can compare the effects of market volatilities on Jianpu Technology and Dunxin Financial 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 Jianpu Technology with a short position of Dunxin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and Dunxin Financial.
Diversification Opportunities for Jianpu Technology and Dunxin Financial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jianpu and Dunxin is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and Dunxin Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunxin Financial Holdings and Jianpu Technology 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 Jianpu Technology are associated (or correlated) with Dunxin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunxin Financial Holdings has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and Dunxin Financial go up and down completely randomly.
Pair Corralation between Jianpu Technology and Dunxin Financial
If you would invest 3.50 in Dunxin Financial Holdings on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Dunxin Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jianpu Technology vs. Dunxin Financial Holdings
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dunxin Financial Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jianpu Technology and Dunxin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and Dunxin Financial
The main advantage of trading using opposite Jianpu Technology and Dunxin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, Dunxin Financial 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 Dunxin Financial will offset losses from the drop in Dunxin Financial's long position.| Jianpu Technology vs. Associates First Capital | Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings |
| Dunxin Financial vs. ReTo Eco Solutions | Dunxin Financial vs. Four Seasons Education | Dunxin Financial vs. Mercurity Fintech Holding | Dunxin Financial vs. Baosheng Media Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |