Correlation Between Jianpu Technology and EverQuote
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and EverQuote 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 EverQuote into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and EverQuote Class A, you can compare the effects of market volatilities on Jianpu Technology and EverQuote 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 EverQuote. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and EverQuote.
Diversification Opportunities for Jianpu Technology and EverQuote
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jianpu and EverQuote is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and EverQuote Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverQuote Class A 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 EverQuote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverQuote Class A has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and EverQuote go up and down completely randomly.
Pair Corralation between Jianpu Technology and EverQuote
If you would invest 1,828 in EverQuote Class A on January 26, 2024 and sell it today you would earn a total of 123.00 from holding EverQuote Class A or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jianpu Technology vs. EverQuote Class A
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| EverQuote Class A |
Jianpu Technology and EverQuote Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and EverQuote
The main advantage of trading using opposite Jianpu Technology and EverQuote positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, EverQuote 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 EverQuote will offset losses from the drop in EverQuote's long position.| Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings | Jianpu Technology vs. Lexinfintech Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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