Correlation Between Jiayin and Lixiang Education

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

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

Diversification Opportunities for Jiayin and Lixiang Education

-0.65

Correlation Coefficient

Jiayin  Lixiang Education

Excellent diversification

The 3 months correlation between Jiayin and Lixiang is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Lixiang Education Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixiang Education Holding 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 Lixiang Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixiang Education Holding has no effect on the direction of Jiayin i.e., Jiayin and Lixiang Education go up and down completely randomly.

Pair Corralation between Jiayin and Lixiang Education

Given the investment horizon of 90 days Jiayin Group is expected to generate 0.36 times more return on investment than Lixiang Education. However, Jiayin Group is 2.79 times less risky than Lixiang Education. It trades about 0.04 of its potential returns per unit of risk. Lixiang Education Holding is currently generating about -0.03 per unit of risk. If you would invest  1,206  in Jiayin Group on May 6, 2025 and sell it today you would earn a total of  72.00  from holding Jiayin Group or generate 5.97% return on investment over 90 days.

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

Jiayin Group  vs.  Lixiang Education Holding

Jiayin Group

Risk-Adjusted Performance

Insignificant

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.

Lixiang Education Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lixiang Education Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Jiayin and Lixiang Education

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

The idea behind Jiayin Group and Lixiang Education Holding 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..