Correlation Between FinVolution and Acadian Asset

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Can any of the company-specific risk be diversified away by investing in both FinVolution and Acadian Asset 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 FinVolution and Acadian Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinVolution Group and Acadian Asset Management, you can compare the effects of market volatilities on FinVolution and Acadian Asset 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 FinVolution with a short position of Acadian Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinVolution and Acadian Asset.

Diversification Opportunities for FinVolution and Acadian Asset

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between FinVolution and Acadian is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group and Acadian Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadian Asset Management and FinVolution 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 FinVolution Group are associated (or correlated) with Acadian Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadian Asset Management has no effect on the direction of FinVolution i.e., FinVolution and Acadian Asset go up and down completely randomly.

Pair Corralation between FinVolution and Acadian Asset

Given the investment horizon of 90 days FinVolution Group is expected to under-perform the Acadian Asset. In addition to that, FinVolution is 1.63 times more volatile than Acadian Asset Management. It trades about -0.14 of its total potential returns per unit of risk. Acadian Asset Management is currently generating about 0.0 per unit of volatility. If you would invest  4,657  in Acadian Asset Management on September 10, 2025 and sell it today you would lose (50.00) from holding Acadian Asset Management or give up 1.07% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

FinVolution Group  vs.  Acadian Asset Management

 Performance 
       Timeline  
FinVolution Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days FinVolution Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Acadian Asset Management 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Acadian Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Acadian Asset is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

FinVolution and Acadian Asset Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FinVolution and Acadian Asset

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

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