Correlation Between Jiayin and Spotify Technology

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

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

Diversification Opportunities for Jiayin and Spotify Technology

-0.02

Correlation Coefficient

Jiayin  Spotify Technology

Good diversification

The 3 months correlation between Jiayin and Spotify is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Spotify Technology SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spotify Technology 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 Spotify Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spotify Technology has no effect on the direction of Jiayin i.e., Jiayin and Spotify Technology go up and down completely randomly.

Pair Corralation between Jiayin and Spotify Technology

Given the investment horizon of 90 days Jiayin is expected to generate 1.12 times less return on investment than Spotify Technology. In addition to that, Jiayin is 1.75 times more volatile than Spotify Technology SA. It trades about 0.05 of its total potential returns per unit of risk. Spotify Technology SA is currently generating about 0.11 per unit of volatility. If you would invest  25,415  in Spotify Technology SA on July 10, 2025 and sell it today you would earn a total of  42,629  from holding Spotify Technology SA or generate 167.73% return on investment over 90 days.

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

Jiayin Group  vs.  Spotify Technology SA

Jiayin Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Jiayin Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Spotify Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Spotify Technology SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Spotify Technology is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Jiayin and Spotify Technology

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

The idea behind Jiayin Group and Spotify Technology SA 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.