Correlation Between Sunlight Financial and Yirendai
Can any of the company-specific risk be diversified away by investing in both Sunlight Financial and Yirendai 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 Sunlight Financial and Yirendai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunlight Financial Holdings and Yirendai, you can compare the effects of market volatilities on Sunlight Financial and Yirendai 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 Sunlight Financial with a short position of Yirendai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunlight Financial and Yirendai.
Diversification Opportunities for Sunlight Financial and Yirendai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunlight and Yirendai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunlight Financial Holdings and Yirendai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yirendai and Sunlight Financial 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 Sunlight Financial Holdings are associated (or correlated) with Yirendai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yirendai has no effect on the direction of Sunlight Financial i.e., Sunlight Financial and Yirendai go up and down completely randomly.
Pair Corralation between Sunlight Financial and Yirendai
If you would invest 499.00 in Yirendai on November 8, 2024 and sell it today you would earn a total of 124.00 from holding Yirendai or generate 24.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sunlight Financial Holdings vs. Yirendai
Performance |
| Timeline |
| Sunlight Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yirendai |
Sunlight Financial and Yirendai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunlight Financial and Yirendai
The main advantage of trading using opposite Sunlight Financial and Yirendai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunlight Financial position performs unexpectedly, Yirendai 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 Yirendai will offset losses from the drop in Yirendai's long position.| Sunlight Financial vs. X Financial Class | Sunlight Financial vs. LM Funding America | Sunlight Financial vs. Nisun International Enterprise | Sunlight Financial vs. Sentage Holdings |
| Yirendai vs. Lexinfintech Holdings | Yirendai vs. FinVolution Group | Yirendai vs. 360 Finance | Yirendai vs. Navient 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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