Correlation Between Jianzhi Education and Genius

Can any of the company-specific risk be diversified away by investing in both Jianzhi Education and Genius 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 Genius 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 Genius Group, you can compare the effects of market volatilities on Jianzhi Education and Genius 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 Genius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and Genius.

Diversification Opportunities for Jianzhi Education and Genius

0.38

Correlation Coefficient

Jianzhi Education  Genius

Weak diversification

The 3 months correlation between Jianzhi and Genius is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and Genius Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Group 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 Genius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Group has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and Genius go up and down completely randomly.

Pair Corralation between Jianzhi Education and Genius

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to generate 0.62 times more return on investment than Genius. However, Jianzhi Education Technology is 1.63 times less risky than Genius. It trades about -0.26 of its potential returns per unit of risk. Genius Group is currently generating about -0.27 per unit of risk. If you would invest  105.00  in Jianzhi Education Technology on September 25, 2024 and sell it today you would lose (23.00) from holding Jianzhi Education Technology or give up 21.9% 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.  Genius Group

Jianzhi Education

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jianzhi Education Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Jianzhi Education showed solid returns over the last few months and may actually be approaching a breakup point.

Genius Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genius Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Jianzhi Education and Genius

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

The idea behind Jianzhi Education Technology and Genius 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.