Correlation Between Liberty Tripadvisor and Jiayin
Can any of the company-specific risk be diversified away by investing in both Liberty Tripadvisor and Jiayin 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 Liberty Tripadvisor and Jiayin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Tripadvisor Holdings and Jiayin Group, you can compare the effects of market volatilities on Liberty Tripadvisor and Jiayin 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 Liberty Tripadvisor with a short position of Jiayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Tripadvisor and Jiayin.
Diversification Opportunities for Liberty Tripadvisor and Jiayin
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Liberty and Jiayin is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Tripadvisor Holdings and Jiayin Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiayin Group and Liberty Tripadvisor 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 Liberty Tripadvisor Holdings are associated (or correlated) with Jiayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiayin Group has no effect on the direction of Liberty Tripadvisor i.e., Liberty Tripadvisor and Jiayin go up and down completely randomly.
Pair Corralation between Liberty Tripadvisor and Jiayin
If you would invest 638.00 in Jiayin Group on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Jiayin Group or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Liberty Tripadvisor Holdings vs. Jiayin Group
Performance |
| Timeline |
| Liberty Tripadvisor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiayin Group |
Liberty Tripadvisor and Jiayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Tripadvisor and Jiayin
The main advantage of trading using opposite Liberty Tripadvisor and Jiayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Tripadvisor position performs unexpectedly, Jiayin 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 Jiayin will offset losses from the drop in Jiayin's long position.| Liberty Tripadvisor vs. Comscore | Liberty Tripadvisor vs. Cheetah Mobile | Liberty Tripadvisor vs. PropertyGuru Group | Liberty Tripadvisor vs. EverQuote Class A |
| Jiayin vs. Oriental Culture Holding | Jiayin vs. Wisekey International Holding | Jiayin vs. Wah Fu Education |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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