Correlation Between X Financial and 360 Finance
Can any of the company-specific risk be diversified away by investing in both X Financial and 360 Finance 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 X Financial and 360 Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Financial Class and 360 Finance, you can compare the effects of market volatilities on X Financial and 360 Finance 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 X Financial with a short position of 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Financial and 360 Finance.
Diversification Opportunities for X Financial and 360 Finance
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XYF and 360 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding X Financial Class and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance and X 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 X Financial Class are associated (or correlated) with 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of X Financial i.e., X Financial and 360 Finance go up and down completely randomly.
Pair Corralation between X Financial and 360 Finance
Considering the 90-day investment horizon X Financial Class is expected to generate 0.54 times more return on investment than 360 Finance. However, X Financial Class is 1.86 times less risky than 360 Finance. It trades about -0.03 of its potential returns per unit of risk. 360 Finance is currently generating about -0.02 per unit of risk. If you would invest 662.00 in X Financial Class on August 28, 2024 and sell it today you would lose (12.00) from holding X Financial Class or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Financial Class vs. 360 Finance
Performance |
| Timeline |
| X Financial Class |
| 360 Finance |
X Financial and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Financial and 360 Finance
The main advantage of trading using opposite X Financial and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Financial position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| X Financial vs. Orix Corp Ads | X Financial vs. FirstCash | X Financial vs. Medallion Financial Corp | X Financial vs. Oportun Financial Corp |
| 360 Finance vs. Marine Products | 360 Finance vs. Asure Software | 360 Finance vs. Marti Technologies | 360 Finance vs. Sonos Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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