Correlation Between Jiayin and Klondike Silver

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

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

Diversification Opportunities for Jiayin and Klondike Silver

0.43

Correlation Coefficient

Jiayin  Klondike Silver

Very weak diversification

The 3 months correlation between Jiayin and Klondike is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Klondike Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klondike Silver Corp 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 Klondike Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klondike Silver Corp has no effect on the direction of Jiayin i.e., Jiayin and Klondike Silver go up and down completely randomly.

Pair Corralation between Jiayin and Klondike Silver

Given the investment horizon of 90 days Jiayin Group is expected to under-perform the Klondike Silver. But the stock apears to be less risky and, when comparing its historical volatility, Jiayin Group is 2.17 times less risky than Klondike Silver. The stock trades about -0.07 of its potential returns per unit of risk. The Klondike Silver Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2.00  in Klondike Silver Corp on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Klondike Silver Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.77%
Values	Daily Returns

Jiayin Group  vs.  Klondike Silver Corp

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.

Klondike Silver Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Klondike Silver Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Klondike Silver showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jiayin and Klondike Silver

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

The idea behind Jiayin Group and Klondike Silver Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.