Correlation Between Jiayin and Crawford Dividend

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

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

Diversification Opportunities for Jiayin and Crawford Dividend

0.04

Correlation Coefficient

Jiayin  Crawford Dividend

Significant diversification

The 3 months correlation between Jiayin and Crawford is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Crawford Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford Dividend Growth 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 Crawford Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford Dividend Growth has no effect on the direction of Jiayin i.e., Jiayin and Crawford Dividend go up and down completely randomly.

Pair Corralation between Jiayin and Crawford Dividend

Given the investment horizon of 90 days Jiayin Group is expected to generate 4.81 times more return on investment than Crawford Dividend. However, Jiayin is 4.81 times more volatile than Crawford Dividend Growth. It trades about 0.06 of its potential returns per unit of risk. Crawford Dividend Growth is currently generating about 0.04 per unit of risk. If you would invest  437.00  in Jiayin Group on October 5, 2024 and sell it today you would earn a total of  219.00  from holding Jiayin Group or generate 50.11% return on investment over 90 days.

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

Jiayin Group  vs.  Crawford Dividend Growth

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.

Crawford Dividend Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crawford Dividend Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Jiayin and Crawford Dividend

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

The idea behind Jiayin Group and Crawford Dividend Growth 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.