Correlation Between ATA Creativity and Cogna Educacao
Can any of the company-specific risk be diversified away by investing in both ATA Creativity and Cogna Educacao 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 ATA Creativity and Cogna Educacao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATA Creativity Global and Cogna Educacao SA, you can compare the effects of market volatilities on ATA Creativity and Cogna Educacao 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 ATA Creativity with a short position of Cogna Educacao. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATA Creativity and Cogna Educacao.
Diversification Opportunities for ATA Creativity and Cogna Educacao
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATA and Cogna is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ATA Creativity Global and Cogna Educacao SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogna Educacao SA and ATA Creativity 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 ATA Creativity Global are associated (or correlated) with Cogna Educacao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogna Educacao SA has no effect on the direction of ATA Creativity i.e., ATA Creativity and Cogna Educacao go up and down completely randomly.
Pair Corralation between ATA Creativity and Cogna Educacao
Given the investment horizon of 90 days ATA Creativity is expected to generate 1.36 times less return on investment than Cogna Educacao. But when comparing it to its historical volatility, ATA Creativity Global is 2.38 times less risky than Cogna Educacao. It trades about 0.05 of its potential returns per unit of risk. Cogna Educacao SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Cogna Educacao SA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cogna Educacao SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATA Creativity Global vs. Cogna Educacao SA
Performance |
| Timeline |
| ATA Creativity Global |
| Cogna Educacao SA |
ATA Creativity and Cogna Educacao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATA Creativity and Cogna Educacao
The main advantage of trading using opposite ATA Creativity and Cogna Educacao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATA Creativity position performs unexpectedly, Cogna Educacao 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 Cogna Educacao will offset losses from the drop in Cogna Educacao's long position.| ATA Creativity vs. Universal Technical Institute | ATA Creativity vs. Cogna Educacao SA | ATA Creativity vs. Sunlands Technology Group | ATA Creativity vs. American Public Education |
| Cogna Educacao vs. Universal Technical Institute | Cogna Educacao vs. ATA Creativity Global | Cogna Educacao vs. Sunlands Technology Group | Cogna Educacao vs. Vasta Platform |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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