Correlation Between Nisun International and FinVolution
Can any of the company-specific risk be diversified away by investing in both Nisun International and FinVolution 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 Nisun International and FinVolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nisun International Enterprise and FinVolution Group, you can compare the effects of market volatilities on Nisun International and FinVolution 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 Nisun International with a short position of FinVolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nisun International and FinVolution.
Diversification Opportunities for Nisun International and FinVolution
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nisun and FinVolution is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nisun International Enterprise and FinVolution Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinVolution Group and Nisun International 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 Nisun International Enterprise are associated (or correlated) with FinVolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinVolution Group has no effect on the direction of Nisun International i.e., Nisun International and FinVolution go up and down completely randomly.
Pair Corralation between Nisun International and FinVolution
Given the investment horizon of 90 days Nisun International Enterprise is expected to under-perform the FinVolution. In addition to that, Nisun International is 3.77 times more volatile than FinVolution Group. It trades about -0.04 of its total potential returns per unit of risk. FinVolution Group is currently generating about 0.03 per unit of volatility. If you would invest 618.00 in FinVolution Group on August 28, 2024 and sell it today you would earn a total of 6.00 from holding FinVolution Group or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nisun International Enterprise vs. FinVolution Group
Performance |
| Timeline |
| Nisun International |
| FinVolution Group |
Nisun International and FinVolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nisun International and FinVolution
The main advantage of trading using opposite Nisun International and FinVolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nisun International position performs unexpectedly, FinVolution 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 FinVolution will offset losses from the drop in FinVolution's long position.| Nisun International vs. Sentage Holdings | Nisun International vs. Yirendai | Nisun International vs. Lexinfintech Holdings | Nisun International vs. Lufax Holding |
| FinVolution vs. SLM Corp | FinVolution vs. Orix Corp Ads | FinVolution vs. FirstCash | FinVolution vs. Medallion Financial Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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