Correlation Between Jiayin and JPMIF Bond

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

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

Diversification Opportunities for Jiayin and JPMIF Bond

-0.48

Correlation Coefficient

Jiayin  JPMIF Bond

Very good diversification

The 3 months correlation between Jiayin and JPMIF is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and JPMIF Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMIF Bond Fund 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 JPMIF Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMIF Bond Fund has no effect on the direction of Jiayin i.e., Jiayin and JPMIF Bond go up and down completely randomly.

Pair Corralation between Jiayin and JPMIF Bond

Given the investment horizon of 90 days Jiayin Group is expected to generate 9.33 times more return on investment than JPMIF Bond. However, Jiayin is 9.33 times more volatile than JPMIF Bond Fund. It trades about 0.04 of its potential returns per unit of risk. JPMIF Bond Fund is currently generating about 0.09 per unit of risk. If you would invest  579.00  in Jiayin Group on October 4, 2024 and sell it today you would earn a total of  76.00  from holding Jiayin Group or generate 13.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.62%
Values	Daily Returns

Jiayin Group  vs.  JPMIF Bond Fund

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.

JPMIF Bond Fund

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JPMIF Bond Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound technical and fundamental indicators, JPMIF Bond is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jiayin and JPMIF Bond

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

The idea behind Jiayin Group and JPMIF Bond Fund 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.