Correlation Between Jiayin and Dreyfus Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jiayin and Dreyfus Global 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 Dreyfus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiayin Group and Dreyfus Global Real, you can compare the effects of market volatilities on Jiayin and Dreyfus Global 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 Dreyfus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and Dreyfus Global.

Diversification Opportunities for Jiayin and Dreyfus Global

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Jiayin and Dreyfus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Dreyfus Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Global Real 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 Dreyfus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Global Real has no effect on the direction of Jiayin i.e., Jiayin and Dreyfus Global go up and down completely randomly.

Pair Corralation between Jiayin and Dreyfus Global

Given the investment horizon of 90 days Jiayin Group is expected to under-perform the Dreyfus Global. In addition to that, Jiayin is 4.11 times more volatile than Dreyfus Global Real. It trades about -0.07 of its total potential returns per unit of risk. Dreyfus Global Real is currently generating about -0.09 per unit of volatility. If you would invest  1,613  in Dreyfus Global Real on October 5, 2024 and sell it today you would lose (82.00) from holding Dreyfus Global Real or give up 5.08% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.39%
ValuesDaily Returns

Jiayin Group  vs.  Dreyfus Global Real

 Performance 
       Timeline  
Jiayin Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
Dreyfus Global Real 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Dreyfus Global Real has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Dreyfus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jiayin and Dreyfus Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jiayin and Dreyfus Global

The main advantage of trading using opposite Jiayin and Dreyfus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, Dreyfus Global 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 Dreyfus Global will offset losses from the drop in Dreyfus Global's long position.
The idea behind Jiayin Group and Dreyfus Global Real 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments