Correlation Between MoneyHero Limited and Jiayin

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

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

Diversification Opportunities for MoneyHero Limited and Jiayin

-0.46

Correlation Coefficient

MoneyHero Limited  Jiayin

Very good diversification

The 3 months correlation between MoneyHero and Jiayin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding MoneyHero Limited Class and Jiayin Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiayin Group and MoneyHero Limited 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 MoneyHero Limited Class are associated (or correlated) with Jiayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiayin Group has no effect on the direction of MoneyHero Limited i.e., MoneyHero Limited and Jiayin go up and down completely randomly.

Pair Corralation between MoneyHero Limited and Jiayin

Considering the 90-day investment horizon MoneyHero Limited Class is expected to under-perform the Jiayin. In addition to that, MoneyHero Limited is 1.18 times more volatile than Jiayin Group. It trades about -0.07 of its total potential returns per unit of risk. Jiayin Group is currently generating about 0.03 per unit of volatility. If you would invest  597.00  in Jiayin Group on September 24, 2024 and sell it today you would earn a total of  29.00  from holding Jiayin Group or generate 4.86% return on investment over 90 days.

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

MoneyHero Limited Class  vs.  Jiayin Group

MoneyHero Limited Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MoneyHero Limited Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, MoneyHero Limited is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Jiayin Group

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jiayin Group are ranked lower than 2 (%) 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 January 2025.

Pair Trading with MoneyHero Limited and Jiayin

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

The idea behind MoneyHero Limited Class and Jiayin 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.