Correlation Between Jiayin and Eaton Vance

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

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

Diversification Opportunities for Jiayin and Eaton Vance

-0.23

Correlation Coefficient

Jiayin  Eaton Vance

Very good diversification

The 3 months correlation between Jiayin and Eaton is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Eaton Vance Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Global 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Global has no effect on the direction of Jiayin i.e., Jiayin and Eaton Vance go up and down completely randomly.

Pair Corralation between Jiayin and Eaton Vance

Given the investment horizon of 90 days Jiayin Group is expected to generate 8.99 times more return on investment than Eaton Vance. However, Jiayin is 8.99 times more volatile than Eaton Vance Global. It trades about 0.06 of its potential returns per unit of risk. Eaton Vance Global is currently generating about 0.05 per unit of risk. If you would invest  391.00  in Jiayin Group on October 4, 2024 and sell it today you would earn a total of  265.00  from holding Jiayin Group or generate 67.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.7%
Values	Daily Returns

Jiayin Group  vs.  Eaton Vance Global

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 latest fragile performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Eaton Vance Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eaton Vance 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 Eaton Vance

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

The idea behind Jiayin Group and Eaton Vance Global 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.