Correlation Between Jianpu Technology and Sunlight Financial
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and Sunlight 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 Sunlight 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 Sunlight Financial Holdings, you can compare the effects of market volatilities on Jianpu Technology and Sunlight 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 Sunlight Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and Sunlight Financial.
Diversification Opportunities for Jianpu Technology and Sunlight Financial
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jianpu and Sunlight is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and Sunlight Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlight Financial 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 Sunlight Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunlight Financial has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and Sunlight Financial go up and down completely randomly.
Pair Corralation between Jianpu Technology and Sunlight Financial
Allowing for the 90-day total investment horizon Jianpu Technology is expected to generate 2.98 times less return on investment than Sunlight Financial. In addition to that, Jianpu Technology is 1.26 times more volatile than Sunlight Financial Holdings. It trades about 0.03 of its total potential returns per unit of risk. Sunlight Financial Holdings is currently generating about 0.12 per unit of volatility. If you would invest 41.00 in Sunlight Financial Holdings on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Sunlight Financial Holdings or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Jianpu Technology vs. Sunlight Financial Holdings
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sunlight Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jianpu Technology and Sunlight Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and Sunlight Financial
The main advantage of trading using opposite Jianpu Technology and Sunlight Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, Sunlight 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 Sunlight Financial will offset losses from the drop in Sunlight 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 |
| Sunlight Financial vs. X Financial Class | Sunlight Financial vs. LM Funding America | Sunlight Financial vs. Nisun International Enterprise | Sunlight Financial vs. Sentage Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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