Correlation Between China Distance and Ambow Education
Can any of the company-specific risk be diversified away by investing in both China Distance and Ambow 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 China Distance and Ambow Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Distance Education and Ambow Education Holding, you can compare the effects of market volatilities on China Distance and Ambow 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 China Distance with a short position of Ambow Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Distance and Ambow Education.
Diversification Opportunities for China Distance and Ambow Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Ambow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Distance Education and Ambow Education Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambow Education Holding and China Distance 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 China Distance Education are associated (or correlated) with Ambow Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambow Education Holding has no effect on the direction of China Distance i.e., China Distance and Ambow Education go up and down completely randomly.
Pair Corralation between China Distance and Ambow Education
If you would invest 158.00 in Ambow Education Holding on January 27, 2024 and sell it today you would earn a total of 20.00 from holding Ambow Education Holding or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China Distance Education vs. Ambow Education Holding
Performance |
| Timeline |
| China Distance Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ambow Education Holding |
China Distance and Ambow Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Distance and Ambow Education
The main advantage of trading using opposite China Distance and Ambow Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Distance position performs unexpectedly, Ambow 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 Ambow Education will offset losses from the drop in Ambow Education's long position.| China Distance vs. Grocery Outlet Holding | China Distance vs. Asure Software | China Distance vs. Pinterest | China Distance vs. Premium Beverage Group |
| Ambow Education vs. Vasta PlatformLtd | Ambow Education vs. Sunlands Technology Group | Ambow Education vs. Cogna Educacao SA | Ambow Education vs. American Public 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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