Correlation Between Jianpu Technology and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and NYSE Composite 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 NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and NYSE Composite, you can compare the effects of market volatilities on Jianpu Technology and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and NYSE Composite.
Diversification Opportunities for Jianpu Technology and NYSE Composite
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jianpu and NYSE is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and NYSE Composite go up and down completely randomly.
Pair Corralation between Jianpu Technology and NYSE Composite
If you would invest 1,750,693 in NYSE Composite on February 14, 2024 and sell it today you would earn a total of 62,702 from holding NYSE Composite or generate 3.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Jianpu Technology vs. NYSE Composite
Performance |
Timeline |
Jianpu Technology and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Jianpu Technology
Pair trading matchups for Jianpu Technology
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Jianpu Technology and NYSE Composite
The main advantage of trading using opposite Jianpu Technology and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings | Jianpu Technology vs. Lexinfintech Holdings |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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