Correlation Between Jiayin and Nobland International

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

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

Diversification Opportunities for Jiayin and Nobland International

-0.36

Correlation Coefficient

Jiayin  Nobland International

Very good diversification

The 3 months correlation between Jiayin and Nobland is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Nobland International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nobland International and Jiayin 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 Jiayin Group are associated (or correlated) with Nobland International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nobland International has no effect on the direction of Jiayin i.e., Jiayin and Nobland International go up and down completely randomly.

Pair Corralation between Jiayin and Nobland International

Given the investment horizon of 90 days Jiayin Group is expected to generate 0.76 times more return on investment than Nobland International. However, Jiayin Group is 1.31 times less risky than Nobland International. It trades about 0.35 of its potential returns per unit of risk. Nobland International is currently generating about -0.2 per unit of risk. If you would invest  626.00  in Jiayin Group on October 21, 2024 and sell it today you would earn a total of  104.00  from holding Jiayin Group or generate 16.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jiayin Group  vs.  Nobland International

Jiayin Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jiayin Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward indicators, Jiayin may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Nobland International

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nobland International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nobland International may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Jiayin and Nobland International

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

The idea behind Jiayin Group and Nobland International 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.