Correlation Between Jiayin and Sino AG

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

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

Diversification Opportunities for Jiayin and Sino AG

-0.17

Correlation Coefficient

Jiayin  Sino AG

Good diversification

The 3 months correlation between Jiayin and Sino is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Sino AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino AG 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 Sino AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino AG has no effect on the direction of Jiayin i.e., Jiayin and Sino AG go up and down completely randomly.

Pair Corralation between Jiayin and Sino AG

Given the investment horizon of 90 days Jiayin is expected to generate 1.18 times less return on investment than Sino AG. In addition to that, Jiayin is 1.34 times more volatile than Sino AG. It trades about 0.09 of its total potential returns per unit of risk. Sino AG is currently generating about 0.15 per unit of volatility. If you would invest  6,450  in Sino AG on October 6, 2024 and sell it today you would earn a total of  350.00  from holding Sino AG or generate 5.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.0%
Values	Daily Returns

Jiayin Group  vs.  Sino AG

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.

Sino AG

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sino AG are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sino AG reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jiayin and Sino AG

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

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