Correlation Between ATA Creativity and QuantaSing Group
Can any of the company-specific risk be diversified away by investing in both ATA Creativity and QuantaSing Group 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 QuantaSing Group 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 QuantaSing Group Limited, you can compare the effects of market volatilities on ATA Creativity and QuantaSing Group 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 QuantaSing Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATA Creativity and QuantaSing Group.
Diversification Opportunities for ATA Creativity and QuantaSing Group
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATA and QuantaSing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ATA Creativity Global and QuantaSing Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantaSing Group 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 QuantaSing Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantaSing Group has no effect on the direction of ATA Creativity i.e., ATA Creativity and QuantaSing Group go up and down completely randomly.
Pair Corralation between ATA Creativity and QuantaSing Group
Given the investment horizon of 90 days ATA Creativity Global is expected to under-perform the QuantaSing Group. But the stock apears to be less risky and, when comparing its historical volatility, ATA Creativity Global is 1.19 times less risky than QuantaSing Group. The stock trades about -0.13 of its potential returns per unit of risk. The QuantaSing Group Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 207.00 in QuantaSing Group Limited on November 7, 2024 and sell it today you would earn a total of 28.00 from holding QuantaSing Group Limited or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATA Creativity Global vs. QuantaSing Group Limited
Performance |
| Timeline |
| ATA Creativity Global |
| QuantaSing Group |
ATA Creativity and QuantaSing Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATA Creativity and QuantaSing Group
The main advantage of trading using opposite ATA Creativity and QuantaSing Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATA Creativity position performs unexpectedly, QuantaSing Group 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 QuantaSing Group will offset losses from the drop in QuantaSing Group's long position.| ATA Creativity vs. Laureate Education | ATA Creativity vs. American Public Education | ATA Creativity vs. Lincoln Educational Services | ATA Creativity vs. Adtalem Global Education |
| QuantaSing Group vs. Golden Sun Education | QuantaSing Group vs. Genius Group | QuantaSing Group vs. Wah Fu Education | QuantaSing Group vs. Lixiang Education Holding |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |