Correlation Between Jiayin and Interarch Building
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By analyzing existing cross correlation between Jiayin Group and Interarch Building Products, you can compare the effects of market volatilities on Jiayin and Interarch Building 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 Interarch Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and Interarch Building.
Diversification Opportunities for Jiayin and Interarch Building
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiayin and Interarch is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Interarch Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interarch Building 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 Interarch Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interarch Building has no effect on the direction of Jiayin i.e., Jiayin and Interarch Building go up and down completely randomly.
Pair Corralation between Jiayin and Interarch Building
Given the investment horizon of 90 days Jiayin is expected to generate 6.73 times less return on investment than Interarch Building. But when comparing it to its historical volatility, Jiayin Group is 1.17 times less risky than Interarch Building. It trades about 0.05 of its potential returns per unit of risk. Interarch Building Products is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 153,410 in Interarch Building Products on October 5, 2024 and sell it today you would earn a total of 28,445 from holding Interarch Building Products or generate 18.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiayin Group vs. Interarch Building Products
Performance |
Timeline |
Jiayin Group |
Interarch Building |
Jiayin and Interarch Building Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiayin and Interarch Building
The main advantage of trading using opposite Jiayin and Interarch Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, Interarch Building 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 Interarch Building will offset losses from the drop in Interarch Building'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 Global Correlations module to find global opportunities by holding instruments from different markets.
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