Correlation Between Ambow Education and GP Strategies
Can any of the company-specific risk be diversified away by investing in both Ambow Education and GP Strategies 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 GP Strategies 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 GP Strategies, you can compare the effects of market volatilities on Ambow Education and GP Strategies 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 GP Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambow Education and GP Strategies.
Diversification Opportunities for Ambow Education and GP Strategies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ambow and GPX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ambow Education Holding and GP Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Strategies 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 GP Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Strategies has no effect on the direction of Ambow Education i.e., Ambow Education and GP Strategies go up and down completely randomly.
Pair Corralation between Ambow Education and GP Strategies
If you would invest (100.00) in GP Strategies on January 20, 2024 and sell it today you would earn a total of 100.00 from holding GP Strategies 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 |
Ambow Education Holding vs. GP Strategies
Performance |
| Timeline |
| Ambow Education Holding |
| GP Strategies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ambow Education and GP Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambow Education and GP Strategies
The main advantage of trading using opposite Ambow Education and GP Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambow Education position performs unexpectedly, GP Strategies 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 GP Strategies will offset losses from the drop in GP Strategies' 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 |
| GP Strategies vs. Diageo PLC ADR | GP Strategies vs. Dave Busters Entertainment | GP Strategies vs. Sports Pouch Beverage | GP Strategies vs. Biglari Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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