Correlation Between Jiayin and SSI

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

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

Diversification Opportunities for Jiayin and SSI

0.77

Correlation Coefficient

Jiayin  SSI

Poor diversification

The 3 months correlation between Jiayin and SSI is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and SSI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSI Group 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 SSI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSI Group has no effect on the direction of Jiayin i.e., Jiayin and SSI go up and down completely randomly.

Pair Corralation between Jiayin and SSI

Given the investment horizon of 90 days Jiayin Group is expected to under-perform the SSI. In addition to that, Jiayin is 1.53 times more volatile than SSI Group. It trades about -0.07 of its total potential returns per unit of risk. SSI Group is currently generating about -0.1 per unit of volatility. If you would invest  368.00  in SSI Group on October 5, 2024 and sell it today you would lose (50.00) from holding SSI Group or give up 13.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.72%
Values	Daily Returns

Jiayin Group  vs.  SSI Group

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.

SSI Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SSI Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Jiayin and SSI

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

The idea behind Jiayin Group and SSI Group 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.