Correlation Between Ambow Education and Meta Data
Can any of the company-specific risk be diversified away by investing in both Ambow Education and Meta Data 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 Meta Data 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 Meta Data, you can compare the effects of market volatilities on Ambow Education and Meta Data 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 Meta Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambow Education and Meta Data.
Diversification Opportunities for Ambow Education and Meta Data
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ambow and Meta is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ambow Education Holding and Meta Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Data 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 Meta Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Data has no effect on the direction of Ambow Education i.e., Ambow Education and Meta Data go up and down completely randomly.
Pair Corralation between Ambow Education and Meta Data
If you would invest 145.00 in Ambow Education Holding on September 25, 2024 and sell it today you would earn a total of 30.00 from holding Ambow Education Holding or generate 20.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ambow Education Holding vs. Meta Data
Performance |
Timeline |
Ambow Education Holding |
Meta Data |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ambow Education and Meta Data Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ambow Education and Meta Data
The main advantage of trading using opposite Ambow Education and Meta Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambow Education position performs unexpectedly, Meta Data 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 Meta Data will offset losses from the drop in Meta Data's long position.Ambow Education vs. Lixiang Education Holding | Ambow Education vs. Jianzhi Education Technology | Ambow Education vs. Golden Sun Education |
Meta Data vs. China Liberal Education | Meta Data vs. Lixiang Education Holding | Meta Data vs. Four Seasons Education | Meta Data vs. Jianzhi Education Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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