Correlation Between IQIYI and Jianpu Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both IQIYI and Jianpu Technology 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 Jianpu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQIYI Inc and Jianpu Technology, you can compare the effects of market volatilities on IQIYI and Jianpu Technology 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 Jianpu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQIYI and Jianpu Technology.

Diversification Opportunities for IQIYI and Jianpu Technology

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between IQIYI and Jianpu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding IQIYI Inc and Jianpu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jianpu Technology 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 Jianpu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jianpu Technology has no effect on the direction of IQIYI i.e., IQIYI and Jianpu Technology go up and down completely randomly.

Pair Corralation between IQIYI and Jianpu Technology

If you would invest  367.00  in IQIYI Inc on December 29, 2023 and sell it today you would earn a total of  36.00  from holding IQIYI Inc or generate 9.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

IQIYI Inc  vs.  Jianpu Technology

 Performance 
       Timeline  
IQIYI Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days IQIYI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Jianpu Technology 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Jianpu Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

IQIYI and Jianpu Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IQIYI and Jianpu Technology

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

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Equity Valuation
Check real value of public entities based on technical and fundamental data
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Bonds Directory
Find actively traded corporate debentures issued by US companies
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios