Correlation Between Jiayin and International Bethlehem

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

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

Diversification Opportunities for Jiayin and International Bethlehem

0.0

Correlation Coefficient

Jiayin  International Bethlehem

Pay attention - limited upside

The 3 months correlation between Jiayin and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and International Bethlehem Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Bethlehem 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 International Bethlehem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bethlehem has no effect on the direction of Jiayin i.e., Jiayin and International Bethlehem go up and down completely randomly.

Pair Corralation between Jiayin and International Bethlehem

If you would invest (100.00) in International Bethlehem Mining on October 6, 2024 and sell it today you would earn a total of  100.00  from holding International Bethlehem Mining or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jiayin Group  vs.  International Bethlehem Mining

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.

International Bethlehem

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Bethlehem Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, International Bethlehem is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jiayin and International Bethlehem

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

The idea behind Jiayin Group and International Bethlehem Mining 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.