Correlation Between Ambow Education and Hailiang Education
Can any of the company-specific risk be diversified away by investing in both Ambow Education and Hailiang Education 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 Hailiang Education 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 Hailiang Education Group, you can compare the effects of market volatilities on Ambow Education and Hailiang Education 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 Hailiang Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambow Education and Hailiang Education.
Diversification Opportunities for Ambow Education and Hailiang Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ambow and Hailiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ambow Education Holding and Hailiang Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hailiang 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 Hailiang Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hailiang Education has no effect on the direction of Ambow Education i.e., Ambow Education and Hailiang Education go up and down completely randomly.
Pair Corralation between Ambow Education and Hailiang Education
If you would invest 680.00 in Ambow Education Holding on December 30, 2023 and sell it today you would lose (508.00) from holding Ambow Education Holding or give up 74.71% 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. Hailiang Education Group
Performance |
Timeline |
Ambow Education Holding |
Hailiang Education |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Ambow Education and Hailiang Education Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ambow Education and Hailiang Education
The main advantage of trading using opposite Ambow Education and Hailiang Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambow Education position performs unexpectedly, Hailiang Education 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 Hailiang Education will offset losses from the drop in Hailiang Education's long position.Ambow Education vs. IhumanInc | Ambow Education vs. 17 Education Technology | Ambow Education vs. MYnd Analytics | Ambow Education vs. Vasta PlatformLtd |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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