Correlation Between Jiayin and SemiLEDS

Can any of the company-specific risk be diversified away by investing in both Jiayin and SemiLEDS 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 Jiayin and SemiLEDS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jiayin Group and SemiLEDS, you can compare the effects of market volatilities on Jiayin and SemiLEDS 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 Jiayin with a short position of SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and SemiLEDS.

Diversification Opportunities for Jiayin and SemiLEDS

0.31

Correlation Coefficient

Jiayin  SemiLEDS

Weak diversification

The 3 months correlation between Jiayin and SemiLEDS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Jiayin 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 Jiayin Group are associated (or correlated) with SemiLEDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SemiLEDS has no effect on the direction of Jiayin i.e., Jiayin and SemiLEDS go up and down completely randomly.

Pair Corralation between Jiayin and SemiLEDS

Given the investment horizon of 90 days Jiayin Group is expected to generate 0.75 times more return on investment than SemiLEDS. However, Jiayin Group is 1.34 times less risky than SemiLEDS. It trades about 0.05 of its potential returns per unit of risk. SemiLEDS is currently generating about -0.09 per unit of risk. If you would invest  1,220  in Jiayin Group on May 9, 2025 and sell it today you would earn a total of  82.00  from holding Jiayin Group or generate 6.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jiayin Group  vs.  SemiLEDS

Jiayin Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Jiayin Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward indicators, Jiayin may actually be approaching a critical reversion point that can send shares even higher in September 2025.

SemiLEDS

Risk-Adjusted Performance

Weakest

Over the last 90 days SemiLEDS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Jiayin and SemiLEDS

The main advantage of trading using opposite Jiayin and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, SemiLEDS 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 SemiLEDS will offset losses from the drop in SemiLEDS's long position.

The idea behind Jiayin Group and SemiLEDS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.