Correlation Between China Distance and Hailiang Education
Can any of the company-specific risk be diversified away by investing in both China Distance 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 China Distance and Hailiang 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 Hailiang Education Group, you can compare the effects of market volatilities on China Distance 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 China Distance with a short position of Hailiang Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Distance and Hailiang Education.
Diversification Opportunities for China Distance and Hailiang Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Hailiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Distance Education and Hailiang Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hailiang Education 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 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 China Distance i.e., China Distance and Hailiang Education go up and down completely randomly.
Pair Corralation between China Distance and Hailiang Education
If you would invest (100.00) in Hailiang Education Group on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Hailiang Education Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Distance Education vs. Hailiang Education Group
Performance |
| Timeline |
| China Distance Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hailiang Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Distance and Hailiang Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Distance and Hailiang Education
The main advantage of trading using opposite China Distance and Hailiang Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Distance 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.| China Distance vs. ServiceNow | China Distance vs. BBB Foods | China Distance vs. Western Digital | China Distance vs. MYT Netherlands Parent |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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