Correlation Between Jiayin and 1125 CA

Can any of the company-specific risk be diversified away by investing in both Jiayin and 1125 CA 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 1125 CA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jiayin Group and 1125 CA HL, you can compare the effects of market volatilities on Jiayin and 1125 CA 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 1125 CA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and 1125 CA.

Diversification Opportunities for Jiayin and 1125 CA

0.0

Correlation Coefficient

Jiayin  1125 CA

Pay attention - limited upside

The 3 months correlation between Jiayin and 1125 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and 1125 CA HL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1125 CA HL 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 1125 CA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1125 CA HL has no effect on the direction of Jiayin i.e., Jiayin and 1125 CA go up and down completely randomly.

Pair Corralation between Jiayin and 1125 CA

If you would invest (100.00) in 1125 CA HL on October 5, 2024 and sell it today you would earn a total of  100.00  from holding 1125 CA HL or generate -100.0% return on investment over 90 days.

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

Jiayin Group  vs.  1125 CA HL

Jiayin Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jiayin Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

1125 CA HL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1125 CA HL has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, 1125 CA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jiayin and 1125 CA

The main advantage of trading using opposite Jiayin and 1125 CA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, 1125 CA 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 1125 CA will offset losses from the drop in 1125 CA's long position.

The idea behind Jiayin Group and 1125 CA HL 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.

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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.