Correlation Between ATA Creativity and Legacy Education
Can any of the company-specific risk be diversified away by investing in both ATA Creativity and Legacy Education 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 Legacy Education 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 Legacy Education, you can compare the effects of market volatilities on ATA Creativity and Legacy Education 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 Legacy Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATA Creativity and Legacy Education.
Diversification Opportunities for ATA Creativity and Legacy Education
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATA and Legacy is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ATA Creativity Global and Legacy Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legacy Education 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 Legacy Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legacy Education has no effect on the direction of ATA Creativity i.e., ATA Creativity and Legacy Education go up and down completely randomly.
Pair Corralation between ATA Creativity and Legacy Education
Given the investment horizon of 90 days ATA Creativity is expected to generate 41.18 times less return on investment than Legacy Education. But when comparing it to its historical volatility, ATA Creativity Global is 1.07 times less risky than Legacy Education. It trades about 0.01 of its potential returns per unit of risk. Legacy Education is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 402.00 in Legacy Education on September 1, 2024 and sell it today you would earn a total of 419.00 from holding Legacy Education or generate 104.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 12.37% |
| Values | Daily Returns |
ATA Creativity Global vs. Legacy Education
Performance |
| Timeline |
| ATA Creativity Global |
| Legacy Education |
ATA Creativity and Legacy Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATA Creativity and Legacy Education
The main advantage of trading using opposite ATA Creativity and Legacy Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATA Creativity position performs unexpectedly, Legacy Education 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 Legacy Education will offset losses from the drop in Legacy Education'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 |
| Legacy Education vs. Bt Brands | Legacy Education vs. Biglari Holdings | Legacy Education vs. Radcom | Legacy Education vs. Grupo Televisa SAB |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |