Correlation Between Jiayin and Vinci S

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

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

Diversification Opportunities for Jiayin and Vinci S

0.52

Correlation Coefficient

Jiayin  Vinci S

Very weak diversification

The 3 months correlation between Jiayin and Vinci is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Vinci S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci S A 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 Vinci S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci S A has no effect on the direction of Jiayin i.e., Jiayin and Vinci S go up and down completely randomly.

Pair Corralation between Jiayin and Vinci S

Given the investment horizon of 90 days Jiayin Group is expected to generate 3.5 times more return on investment than Vinci S. However, Jiayin is 3.5 times more volatile than Vinci S A. It trades about 0.06 of its potential returns per unit of risk. Vinci S A is currently generating about 0.02 per unit of risk. If you would invest  273.00  in Jiayin Group on October 4, 2024 and sell it today you would earn a total of  382.00  from holding Jiayin Group or generate 139.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.0%
Values	Daily Returns

Jiayin Group  vs.  Vinci S A

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 latest fragile performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Vinci S A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vinci S A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Vinci S is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jiayin and Vinci S

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

The idea behind Jiayin Group and Vinci S A 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.