Correlation Between Jianpu Technology and Gaia
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and Gaia 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 Gaia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and Gaia Inc, you can compare the effects of market volatilities on Jianpu Technology and Gaia 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 Gaia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and Gaia.
Diversification Opportunities for Jianpu Technology and Gaia
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jianpu and Gaia is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and Gaia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaia Inc 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 Gaia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaia Inc has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and Gaia go up and down completely randomly.
Pair Corralation between Jianpu Technology and Gaia
If you would invest 291.00 in Gaia Inc on January 25, 2024 and sell it today you would earn a total of 111.00 from holding Gaia Inc or generate 38.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Jianpu Technology vs. Gaia Inc
Performance |
Timeline |
Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gaia Inc |
Jianpu Technology and Gaia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jianpu Technology and Gaia
The main advantage of trading using opposite Jianpu Technology and Gaia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, Gaia 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 Gaia will offset losses from the drop in Gaia'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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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