Correlation Between Jianzhi Education and ATA Creativity

Can any of the company-specific risk be diversified away by investing in both Jianzhi Education and ATA Creativity 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 Jianzhi Education and ATA Creativity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jianzhi Education Technology and ATA Creativity Global, you can compare the effects of market volatilities on Jianzhi Education and ATA Creativity 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 Jianzhi Education with a short position of ATA Creativity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and ATA Creativity.

Diversification Opportunities for Jianzhi Education and ATA Creativity

0.37

Correlation Coefficient

Jianzhi Education  ATA Creativity

Weak diversification

The 3 months correlation between Jianzhi and ATA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and ATA Creativity Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA Creativity Global and Jianzhi 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 Jianzhi Education Technology are associated (or correlated) with ATA Creativity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA Creativity Global has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and ATA Creativity go up and down completely randomly.

Pair Corralation between Jianzhi Education and ATA Creativity

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to under-perform the ATA Creativity. In addition to that, Jianzhi Education is 1.32 times more volatile than ATA Creativity Global. It trades about -0.02 of its total potential returns per unit of risk. ATA Creativity Global is currently generating about 0.0 per unit of volatility. If you would invest  132.00  in ATA Creativity Global on September 26, 2024 and sell it today you would lose (51.00) from holding ATA Creativity Global or give up 38.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jianzhi Education Technology  vs.  ATA Creativity Global

Jianzhi Education

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jianzhi Education Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ATA Creativity Global

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ATA Creativity Global are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, ATA Creativity reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jianzhi Education and ATA Creativity

The main advantage of trading using opposite Jianzhi Education and ATA Creativity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianzhi Education position performs unexpectedly, ATA Creativity 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 ATA Creativity will offset losses from the drop in ATA Creativity's long position.

The idea behind Jianzhi Education Technology and ATA Creativity Global 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.

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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.