Correlation Between Jiayin and Roper Technologies,

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

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

Diversification Opportunities for Jiayin and Roper Technologies,

-0.01

Correlation Coefficient

Jiayin  Roper Technologies,

Good diversification

The 3 months correlation between Jiayin and Roper is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Roper Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roper Technologies, 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 Roper Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roper Technologies, has no effect on the direction of Jiayin i.e., Jiayin and Roper Technologies, go up and down completely randomly.

Pair Corralation between Jiayin and Roper Technologies,

Given the investment horizon of 90 days Jiayin Group is expected to generate 2.96 times more return on investment than Roper Technologies,. However, Jiayin is 2.96 times more volatile than Roper Technologies,. It trades about 0.03 of its potential returns per unit of risk. Roper Technologies, is currently generating about -0.1 per unit of risk. If you would invest  640.00  in Jiayin Group on October 6, 2024 and sell it today you would earn a total of  13.00  from holding Jiayin Group or generate 2.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jiayin Group  vs.  Roper Technologies,

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.

Roper Technologies,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Roper Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Roper Technologies, is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Jiayin and Roper Technologies,

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

The idea behind Jiayin Group and Roper Technologies, 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.