Correlation Between Jianpu Technology and Elevate Credit

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

By analyzing existing cross correlation between Jianpu Technology and Elevate Credit, you can compare the effects of market volatilities on Jianpu Technology and Elevate Credit 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 Jianpu Technology with a short position of Elevate Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and Elevate Credit.

Diversification Opportunities for Jianpu Technology and Elevate Credit

-0.09

Correlation Coefficient

Jianpu Technology  Elevate Credit

Good diversification

The 3 months correlation between Jianpu and Elevate is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and Elevate Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevate Credit and Jianpu Technology 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 Jianpu Technology are associated (or correlated) with Elevate Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevate Credit has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and Elevate Credit go up and down completely randomly.

Pair Corralation between Jianpu Technology and Elevate Credit

If you would invest  187.00  in Elevate Credit on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Elevate Credit or generate 0.0% return on investment over 90 days.

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

Jianpu Technology  vs.  Elevate Credit

Jianpu Technology

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Jianpu Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Jianpu Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Elevate Credit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elevate Credit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Elevate Credit is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Jianpu Technology and Elevate Credit

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

The idea behind Jianpu Technology and Elevate Credit 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.