Correlation Between Jiayin and Tianci International

Can any of the company-specific risk be diversified away by investing in both Jiayin and Tianci 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 Tianci 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 Tianci International, you can compare the effects of market volatilities on Jiayin and Tianci 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 Tianci International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and Tianci International.

Diversification Opportunities for Jiayin and Tianci International

0.08

Correlation Coefficient

Jiayin  Tianci International

Significant diversification

The 3 months correlation between Jiayin and Tianci is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Tianci International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianci 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 Tianci International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianci International has no effect on the direction of Jiayin i.e., Jiayin and Tianci International go up and down completely randomly.

Pair Corralation between Jiayin and Tianci International

Given the investment horizon of 90 days Jiayin Group is expected to generate 0.81 times more return on investment than Tianci International. However, Jiayin Group is 1.24 times less risky than Tianci International. It trades about 0.05 of its potential returns per unit of risk. Tianci International is currently generating about 0.02 per unit of risk. If you would invest  644.00  in Jiayin Group on October 5, 2024 and sell it today you would earn a total of  12.00  from holding Jiayin Group or generate 1.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Jiayin Group  vs.  Tianci International

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.

Tianci International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jiayin and Tianci International

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

The idea behind Jiayin Group and Tianci 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.

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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 Stocks Directory module to find actively traded stocks across global markets.