Correlation Between Jiayin and Dreyfus Global
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Jiayin Group vs. Dreyfus Global Real
Performance |
Timeline |
Jiayin Group |
Dreyfus Global Real |
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.Jiayin vs. Oriental Culture Holding | Jiayin vs. Wisekey International Holding | Jiayin vs. Wah Fu Education |
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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..
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