Correlation Between Jianpu Technology and X Financial
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and X 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 X 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 X Financial Class, you can compare the effects of market volatilities on Jianpu Technology and X 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 X Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and X Financial.
Diversification Opportunities for Jianpu Technology and X Financial
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jianpu and XYF is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and X Financial Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Financial Class 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 X Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Financial Class has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and X Financial go up and down completely randomly.
Pair Corralation between Jianpu Technology and X Financial
Allowing for the 90-day total investment horizon Jianpu Technology is expected to under-perform the X Financial. In addition to that, Jianpu Technology is 1.25 times more volatile than X Financial Class. It trades about 0.0 of its total potential returns per unit of risk. X Financial Class is currently generating about 0.06 per unit of volatility. If you would invest 345.00 in X Financial Class on August 31, 2024 and sell it today you would earn a total of 381.00 from holding X Financial Class or generate 110.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 28.3% |
| Values | Daily Returns |
Jianpu Technology vs. X Financial Class
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| X Financial Class |
Jianpu Technology and X Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and X Financial
The main advantage of trading using opposite Jianpu Technology and X Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, X 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 X Financial will offset losses from the drop in X 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 |
| X Financial vs. LM Funding America | X Financial vs. Nisun International Enterprise | X Financial vs. Qudian Inc | X Financial vs. FinVolution 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |