Correlation Between Jianpu Technology and Yirendai

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

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

Diversification Opportunities for Jianpu Technology and Yirendai

0.0

Correlation Coefficient

Jianpu Technology  Yirendai

Pay attention - limited upside

The 3 months correlation between Jianpu and Yirendai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jianpu Technology and Yirendai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yirendai 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 Yirendai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yirendai has no effect on the direction of Jianpu Technology i.e., Jianpu Technology and Yirendai go up and down completely randomly.

Pair Corralation between Jianpu Technology and Yirendai

If you would invest (100.00) in Jianpu Technology on May 7, 2025 and sell it today you would earn a total of  100.00  from holding Jianpu Technology or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jianpu Technology  vs.  Yirendai

Jianpu Technology

Risk-Adjusted Performance

Weakest

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

Yirendai

Risk-Adjusted Performance

Weakest

Over the last 90 days Yirendai has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Yirendai is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jianpu Technology and Yirendai

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

The idea behind Jianpu Technology and Yirendai 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.