Correlation Between Ambow Education and China Distance
Can any of the company-specific risk be diversified away by investing in both Ambow Education and China Distance 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 Ambow Education and China Distance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambow Education Holding and China Distance Education, you can compare the effects of market volatilities on Ambow Education and China Distance 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 Ambow Education with a short position of China Distance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambow Education and China Distance.
Diversification Opportunities for Ambow Education and China Distance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ambow and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ambow Education Holding and China Distance Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Distance Education and Ambow Education 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 Ambow Education Holding are associated (or correlated) with China Distance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Distance Education has no effect on the direction of Ambow Education i.e., Ambow Education and China Distance go up and down completely randomly.
Pair Corralation between Ambow Education and China Distance
If you would invest 355.00 in Ambow Education Holding on January 25, 2024 and sell it today you would lose (172.00) from holding Ambow Education Holding or give up 48.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ambow Education Holding vs. China Distance Education
Performance |
Timeline |
Ambow Education Holding |
China Distance Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ambow Education and China Distance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ambow Education and China Distance
The main advantage of trading using opposite Ambow Education and China Distance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambow Education position performs unexpectedly, China Distance 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 China Distance will offset losses from the drop in China Distance's long position.Ambow Education vs. Vasta PlatformLtd | Ambow Education vs. Sunlands Technology Group | Ambow Education vs. Cogna Educacao SA | Ambow Education vs. American Public Education |
China Distance vs. Waste Management | China Distance vs. Molson Coors Brewing | China Distance vs. Videolocity International | China Distance vs. P10 Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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