Correlation Between Four Seasons and Hailiang Education
Can any of the company-specific risk be diversified away by investing in both Four Seasons 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 Four Seasons and Hailiang Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Four Seasons Education and Hailiang Education Group, you can compare the effects of market volatilities on Four Seasons 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 Four Seasons with a short position of Hailiang Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Seasons and Hailiang Education.
Diversification Opportunities for Four Seasons and Hailiang Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Four and Hailiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Four Seasons 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 Four Seasons 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 Four Seasons 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 Four Seasons i.e., Four Seasons and Hailiang Education go up and down completely randomly.
Pair Corralation between Four Seasons and Hailiang Education
If you would invest 1,320 in Four Seasons Education on January 17, 2024 and sell it today you would lose (272.00) from holding Four Seasons Education or give up 20.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Four Seasons Education vs. Hailiang Education Group
Performance |
| Timeline |
| Four Seasons Education |
| Hailiang Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Four Seasons and Hailiang Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Four Seasons and Hailiang Education
The main advantage of trading using opposite Four Seasons and Hailiang Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Seasons 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.The idea behind Four Seasons Education and Hailiang Education Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hailiang Education vs. Yum Brands | Hailiang Education vs. Rave Restaurant Group | Hailiang Education vs. Here Media | Hailiang Education vs. Cracker Barrel Old |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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