Correlation Between China Liberal and Genius
Can any of the company-specific risk be diversified away by investing in both China Liberal 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 China Liberal and Genius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Liberal Education and Genius Group, you can compare the effects of market volatilities on China Liberal 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 China Liberal with a short position of Genius. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Liberal and Genius.
Diversification Opportunities for China Liberal and Genius
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Genius is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Liberal Education and Genius Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Group and China Liberal 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 China Liberal Education 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 China Liberal i.e., China Liberal and Genius go up and down completely randomly.
Pair Corralation between China Liberal and Genius
Given the investment horizon of 90 days China Liberal Education is expected to generate 10.65 times more return on investment than Genius. However, China Liberal is 10.65 times more volatile than Genius Group. It trades about 0.12 of its potential returns per unit of risk. Genius Group is currently generating about -0.03 per unit of risk. If you would invest 30.00 in China Liberal Education on November 1, 2024 and sell it today you would earn a total of 745.00 from holding China Liberal Education or generate 2483.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Liberal Education vs. Genius Group
Performance |
| Timeline |
| China Liberal Education |
| Genius Group |
China Liberal and Genius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Liberal and Genius
The main advantage of trading using opposite China Liberal and Genius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Liberal 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.| China Liberal vs. Lixiang Education Holding | China Liberal vs. Four Seasons Education | China Liberal vs. Jianzhi Education Technology | China Liberal vs. Elite Education Group |
| Genius vs. Cosmos Health | Genius vs. Motorsport Gaming Us | Genius vs. AMTD Digital | Genius vs. Magic Empire Global |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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