Correlation Between Jianpu Technology and Sentage Holdings
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and Sentage Holdings 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 Sentage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and Sentage Holdings, you can compare the effects of market volatilities on Jianpu Technology and Sentage Holdings 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 Sentage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and Sentage Holdings.
Diversification Opportunities for Jianpu Technology and Sentage Holdings
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jianpu and Sentage is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and Sentage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentage 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 Sentage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentage Holdings has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and Sentage Holdings go up and down completely randomly.
Pair Corralation between Jianpu Technology and Sentage Holdings
If you would invest 131.00 in Jianpu Technology on August 28, 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 | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jianpu Technology vs. Sentage Holdings
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sentage Holdings |
Jianpu Technology and Sentage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and Sentage Holdings
The main advantage of trading using opposite Jianpu Technology and Sentage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, Sentage Holdings 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 Sentage Holdings will offset losses from the drop in Sentage Holdings' long position.| Jianpu Technology vs. Associates First Capital | Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings |
| Sentage Holdings vs. Yirendai | Sentage Holdings vs. Lexinfintech Holdings | Sentage Holdings vs. Lufax Holding | Sentage Holdings 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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