| EDU Stock | | | USD 57.36 0.35 0.61% |
The current 90-days correlation between New Oriental Education and American Public Education is -0.12 (i.e., Good diversification). The correlation of New Oriental is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
New Oriental Correlation With Market
Average diversification
The correlation between New Oriental Education and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New Oriental Education and DJI in the same portfolio, assuming nothing else is changed.
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Investing Opportunities to better understand how to build diversified portfolios, which includes a position in New Oriental Education. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in unemployment.