Correlation Between Jiayin and Amatheon Agri

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

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

Diversification Opportunities for Jiayin and Amatheon Agri

0.54

Correlation Coefficient

Jiayin  Amatheon Agri

Very weak diversification

The 3 months correlation between Jiayin and Amatheon is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Amatheon Agri Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amatheon Agri Holding 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 Amatheon Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amatheon Agri Holding has no effect on the direction of Jiayin i.e., Jiayin and Amatheon Agri go up and down completely randomly.

Pair Corralation between Jiayin and Amatheon Agri

Given the investment horizon of 90 days Jiayin is expected to generate 23.91 times less return on investment than Amatheon Agri. But when comparing it to its historical volatility, Jiayin Group is 6.64 times less risky than Amatheon Agri. It trades about 0.05 of its potential returns per unit of risk. Amatheon Agri Holding is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2.25  in Amatheon Agri Holding on October 5, 2024 and sell it today you would earn a total of  0.75  from holding Amatheon Agri Holding or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Jiayin Group  vs.  Amatheon Agri Holding

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.

Amatheon Agri Holding

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amatheon Agri Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Amatheon Agri reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jiayin and Amatheon Agri

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

The idea behind Jiayin Group and Amatheon Agri Holding 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..