Correlation Between Jiayin and Four Seasons
Can any of the company-specific risk be diversified away by investing in both Jiayin and Four Seasons 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 Four Seasons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiayin Group and Four Seasons Education, you can compare the effects of market volatilities on Jiayin and Four Seasons 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 Four Seasons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayin and Four Seasons.
Diversification Opportunities for Jiayin and Four Seasons
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiayin and Four is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jiayin Group and Four Seasons Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Seasons Education 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 Four Seasons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Seasons Education has no effect on the direction of Jiayin i.e., Jiayin and Four Seasons go up and down completely randomly.
Pair Corralation between Jiayin and Four Seasons
Given the investment horizon of 90 days Jiayin Group is expected to under-perform the Four Seasons. But the stock apears to be less risky and, when comparing its historical volatility, Jiayin Group is 2.14 times less risky than Four Seasons. The stock trades about -0.2 of its potential returns per unit of risk. The Four Seasons Education is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 970.00 in Four Seasons Education on June 11, 2025 and sell it today you would earn a total of 435.00 from holding Four Seasons Education or generate 44.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiayin Group vs. Four Seasons Education
Performance |
| Timeline |
| Jiayin Group |
| Four Seasons Education |
Jiayin and Four Seasons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiayin and Four Seasons
The main advantage of trading using opposite Jiayin and Four Seasons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayin position performs unexpectedly, Four Seasons 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 Four Seasons will offset losses from the drop in Four Seasons' long position.| Jiayin vs. Oriental Culture Holding | Jiayin vs. Wah Fu Education | Jiayin vs. Wisekey International Holding |
| Four Seasons vs. Wah Fu Education | Four Seasons vs. 51Talk Online Education | Four Seasons vs. Grand Canyon Education | Four Seasons vs. Bright Scholar Education |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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