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
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jianpu and Gaia is 0.0. 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
Allowing for the 90-day total investment horizon Jianpu Technology is expected to generate 1.21 times more return on investment than Gaia. However, Jianpu Technology is 1.21 times more volatile than Gaia Inc. It trades about 0.01 of its potential returns per unit of risk. Gaia Inc is currently generating about -0.01 per unit of risk. If you would invest 109.00 in Jianpu Technology on December 29, 2023 and sell it today you would lose (31.00) from holding Jianpu Technology or give up 28.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 94.75% |
Values | Daily Returns |
Jianpu Technology vs. Gaia Inc
Performance |
Timeline |
Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Low | High |
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. AssetMark Financial Holdings | Jianpu Technology vs. Philip Morris International | Jianpu Technology vs. PennantPark Floating Rate | Jianpu Technology vs. Rand Capital Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |