Correlation Between Jiayin and 18977W2B5

Can any of the company-specific risk be diversified away by investing in both Jiayin and 18977W2B5 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 18977W2B5 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jiayin Group and CNO 165 06 JAN 25, you can compare the effects of market volatilities on Jiayin and 18977W2B5 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 18977W2B5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and 18977W2B5.

Diversification Opportunities for Jiayin and 18977W2B5

-0.51

Correlation Coefficient

Jiayin  18977W2B5

Excellent diversification

The 3 months correlation between Jiayin and 18977W2B5 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and CNO 165 06 JAN 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNO 165 06 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 18977W2B5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNO 165 06 has no effect on the direction of Jiayin i.e., Jiayin and 18977W2B5 go up and down completely randomly.

Pair Corralation between Jiayin and 18977W2B5

Given the investment horizon of 90 days Jiayin Group is expected to generate 1.19 times more return on investment than 18977W2B5. However, Jiayin is 1.19 times more volatile than CNO 165 06 JAN 25. It trades about 0.35 of its potential returns per unit of risk. CNO 165 06 JAN 25 is currently generating about -1.09 per unit of risk. If you would invest  626.00  in Jiayin Group on October 21, 2024 and sell it today you would earn a total of  104.00  from holding Jiayin Group or generate 16.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	15.79%
Values	Daily Returns

Jiayin Group  vs.  CNO 165 06 JAN 25

Jiayin Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jiayin Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward indicators, Jiayin may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CNO 165 06

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CNO 165 06 JAN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for CNO 165 06 JAN 25 investors.

Pair Trading with Jiayin and 18977W2B5

The main advantage of trading using opposite Jiayin and 18977W2B5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, 18977W2B5 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 18977W2B5 will offset losses from the drop in 18977W2B5's long position.

The idea behind Jiayin Group and CNO 165 06 JAN 25 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.