Correlation Between IQIYI and Jack In
Can any of the company-specific risk be diversified away by investing in both IQIYI and Jack In 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 IQIYI and Jack In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iQIYI Inc and Jack In The, you can compare the effects of market volatilities on IQIYI and Jack In 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 IQIYI with a short position of Jack In. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQIYI and Jack In.
Diversification Opportunities for IQIYI and Jack In
Pay attention - limited upside
The 3 months correlation between IQIYI and Jack is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding iQIYI Inc and Jack In The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack In and IQIYI 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 iQIYI Inc are associated (or correlated) with Jack In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack In has no effect on the direction of IQIYI i.e., IQIYI and Jack In go up and down completely randomly.
Pair Corralation between IQIYI and Jack In
Allowing for the 90-day total investment horizon iQIYI Inc is expected to generate 1.72 times more return on investment than Jack In. However, IQIYI is 1.72 times more volatile than Jack In The. It trades about 0.03 of its potential returns per unit of risk. Jack In The is currently generating about -0.08 per unit of risk. If you would invest 423.00 in iQIYI Inc on January 25, 2024 and sell it today you would earn a total of 35.00 from holding iQIYI Inc or generate 8.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
iQIYI Inc vs. Jack In The
Performance |
Timeline |
iQIYI Inc |
Jack In |
IQIYI and Jack In Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IQIYI and Jack In
The main advantage of trading using opposite IQIYI and Jack In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQIYI position performs unexpectedly, Jack In 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 Jack In will offset losses from the drop in Jack In's long position.IQIYI vs. Roku Inc | IQIYI vs. Paramount Global Class | IQIYI vs. Warner Bros Discovery | IQIYI vs. Paramount Global Class |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Money Managers Screen money managers from public funds and ETFs managed around the world |