Correlation Between Gaia and Jianpu Technology
Can any of the company-specific risk be diversified away by investing in both Gaia 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 Gaia and Jianpu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaia Inc and Jianpu Technology, you can compare the effects of market volatilities on Gaia 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 Gaia with a short position of Jianpu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaia and Jianpu Technology.
Diversification Opportunities for Gaia and Jianpu Technology
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaia and Jianpu is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gaia Inc and Jianpu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jianpu Technology and Gaia 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 Gaia 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 Gaia i.e., Gaia and Jianpu Technology go up and down completely randomly.
Pair Corralation between Gaia and Jianpu Technology
If you would invest 291.00 in Gaia Inc on January 26, 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 | 4.76% |
Values | Daily Returns |
Gaia Inc vs. Jianpu Technology
Performance |
Timeline |
Gaia Inc |
Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Gaia and Jianpu Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaia and Jianpu Technology
The main advantage of trading using opposite Gaia and Jianpu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaia 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.Gaia vs. Roku Inc | Gaia vs. Paramount Global Class | Gaia vs. Warner Bros Discovery | Gaia vs. Paramount Global Class |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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