Correlation Between X Financial and China Lending
Can any of the company-specific risk be diversified away by investing in both X Financial and China Lending 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 China Lending 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 China Lending Corp, you can compare the effects of market volatilities on X Financial and China Lending 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 China Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Financial and China Lending.
Diversification Opportunities for X Financial and China Lending
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XYF and China is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding X Financial Class and China Lending Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Lending Corp 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 China Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Lending Corp has no effect on the direction of X Financial i.e., X Financial and China Lending go up and down completely randomly.
Pair Corralation between X Financial and China Lending
If you would invest 11.00 in China Lending Corp on August 24, 2024 and sell it today you would earn a total of 0.00 from holding China Lending Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
X Financial Class vs. China Lending Corp
Performance |
| Timeline |
| X Financial Class |
| China Lending Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
X Financial and China Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Financial and China Lending
The main advantage of trading using opposite X Financial and China Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Financial position performs unexpectedly, China Lending 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 China Lending will offset losses from the drop in China Lending's long position.| X Financial vs. LM Funding America | X Financial vs. Nisun International Enterprise | X Financial vs. Qudian Inc | X Financial vs. FinVolution Group |
| China Lending vs. Qudian Inc | China Lending vs. X Financial Class | China Lending vs. FinVolution Group | China Lending vs. Senmiao Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |