Correlation Between Lexinfintech Holdings and Xiaobai Maimai
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and Xiaobai Maimai 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 Lexinfintech Holdings and Xiaobai Maimai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Xiaobai Maimai, you can compare the effects of market volatilities on Lexinfintech Holdings and Xiaobai Maimai 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 Lexinfintech Holdings with a short position of Xiaobai Maimai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Xiaobai Maimai.
Diversification Opportunities for Lexinfintech Holdings and Xiaobai Maimai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lexinfintech and Xiaobai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Xiaobai Maimai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiaobai Maimai and Lexinfintech Holdings 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 Lexinfintech Holdings are associated (or correlated) with Xiaobai Maimai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiaobai Maimai has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and Xiaobai Maimai go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Xiaobai Maimai
If you would invest (100.00) in Xiaobai Maimai on January 18, 2024 and sell it today you would earn a total of 100.00 from holding Xiaobai Maimai 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 |
Lexinfintech Holdings vs. Xiaobai Maimai
Performance |
| Timeline |
| Lexinfintech Holdings |
| Xiaobai Maimai |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lexinfintech Holdings and Xiaobai Maimai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Xiaobai Maimai
The main advantage of trading using opposite Lexinfintech Holdings and Xiaobai Maimai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, Xiaobai Maimai 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 Xiaobai Maimai will offset losses from the drop in Xiaobai Maimai's long position.| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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