Correlation Between Jianpu Technology and IQIYI
Can any of the company-specific risk be diversified away by investing in both Jianpu Technology and IQIYI 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 IQIYI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianpu Technology and iQIYI Inc, you can compare the effects of market volatilities on Jianpu Technology and IQIYI 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 IQIYI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianpu Technology and IQIYI.
Diversification Opportunities for Jianpu Technology and IQIYI
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jianpu and IQIYI is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and iQIYI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iQIYI 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 IQIYI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iQIYI Inc has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and IQIYI go up and down completely randomly.
Pair Corralation between Jianpu Technology and IQIYI
If you would invest 395.00 in iQIYI Inc on January 19, 2024 and sell it today you would earn a total of 22.00 from holding iQIYI Inc or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Jianpu Technology vs. iQIYI Inc
Performance |
| Timeline |
| Jianpu Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| iQIYI Inc |
Jianpu Technology and IQIYI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianpu Technology and IQIYI
The main advantage of trading using opposite Jianpu Technology and IQIYI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianpu Technology position performs unexpectedly, IQIYI 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 IQIYI will offset losses from the drop in IQIYI's long position.| Jianpu Technology vs. Yirendai | Jianpu Technology vs. Federal Agricultural Mortgage | Jianpu Technology vs. Sentage Holdings | Jianpu Technology vs. Lexinfintech Holdings |
| IQIYI vs. Roku Inc | IQIYI vs. Paramount Global Class | IQIYI vs. Warner Bros Discovery | IQIYI vs. Paramount Global Class |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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