Correlation Between Eason Technology and Jianpu Technology

Can any of the company-specific risk be diversified away by investing in both Eason Technology and Jianpu Technology 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 Eason Technology and Jianpu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eason Technology Limited and Jianpu Technology, you can compare the effects of market volatilities on Eason Technology and Jianpu Technology 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 Eason Technology with a short position of Jianpu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eason Technology and Jianpu Technology.

Diversification Opportunities for Eason Technology and Jianpu Technology

0.0

Correlation Coefficient

Eason Technology  Jianpu Technology

Pay attention - limited upside

The 3 months correlation between Eason and Jianpu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eason Technology Limited and Jianpu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jianpu Technology and Eason Technology 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 Eason Technology Limited are associated (or correlated) with Jianpu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jianpu Technology has no effect on the direction of Eason Technology i.e., Eason Technology and Jianpu Technology go up and down completely randomly.

Pair Corralation between Eason Technology and Jianpu Technology

If you would invest  2,900  in Eason Technology Limited on December 27, 2024 and sell it today you would lose (2,192) from holding Eason Technology Limited or give up 75.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eason Technology Limited  vs.  Jianpu Technology

Eason Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eason Technology Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Eason Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Jianpu Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jianpu Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Jianpu Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Eason Technology and Jianpu Technology

The main advantage of trading using opposite Eason Technology and Jianpu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eason Technology position performs unexpectedly, Jianpu Technology 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 Jianpu Technology will offset losses from the drop in Jianpu Technology's long position.

The idea behind Eason Technology Limited and Jianpu Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.