Correlation Between Jianpu Technology and Lufax Holding
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and Lufax Holding 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 Lufax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and Lufax Holding, you can compare the effects of market volatilities on Jianpu Technology and Lufax Holding 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 Lufax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and Lufax Holding.
Diversification Opportunities for Jianpu Technology and Lufax Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jianpu and Lufax is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and Lufax Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lufax Holding 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 Lufax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lufax Holding has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and Lufax Holding go up and down completely randomly.
Pair Corralation between Jianpu Technology and Lufax Holding
If you would invest 131.00 in Jianpu Technology on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Jianpu Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Jianpu Technology vs. Lufax Holding
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lufax Holding |
Jianpu Technology and Lufax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and Lufax Holding
The main advantage of trading using opposite Jianpu Technology and Lufax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, Lufax Holding 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 Lufax Holding will offset losses from the drop in Lufax Holding's long position.| Jianpu Technology vs. Associates First Capital | Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings |
| Lufax Holding vs. 360 Finance | Lufax Holding vs. FinVolution Group | Lufax Holding vs. Qudian Inc | Lufax Holding vs. X Financial Class |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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