Correlation Between New Oriental and Fibra Plus
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By analyzing existing cross correlation between New Oriental Education and Fibra Plus, you can compare the effects of market volatilities on New Oriental and Fibra Plus 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 New Oriental with a short position of Fibra Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Oriental and Fibra Plus.
Diversification Opportunities for New Oriental and Fibra Plus
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and Fibra is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding New Oriental Education and Fibra Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra Plus and New Oriental 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 New Oriental Education are associated (or correlated) with Fibra Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra Plus has no effect on the direction of New Oriental i.e., New Oriental and Fibra Plus go up and down completely randomly.
Pair Corralation between New Oriental and Fibra Plus
Assuming the 90 days trading horizon New Oriental Education is expected to under-perform the Fibra Plus. But the stock apears to be less risky and, when comparing its historical volatility, New Oriental Education is 6.24 times less risky than Fibra Plus. The stock trades about -0.3 of its potential returns per unit of risk. The Fibra Plus is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 570.00 in Fibra Plus on August 30, 2024 and sell it today you would lose (4.00) from holding Fibra Plus or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
New Oriental Education vs. Fibra Plus
Performance |
| Timeline |
| New Oriental Education |
| Fibra Plus |
New Oriental and Fibra Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Oriental and Fibra Plus
The main advantage of trading using opposite New Oriental and Fibra Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Oriental position performs unexpectedly, Fibra Plus 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 Fibra Plus will offset losses from the drop in Fibra Plus' long position.| New Oriental vs. The Select Sector | New Oriental vs. SPDR Series Trust | New Oriental vs. FibroGen | New Oriental vs. iShares Trust |
| Fibra Plus vs. Grupo Hotelero Santa | Fibra Plus vs. Southern Copper | Fibra Plus vs. United Airlines Holdings | Fibra Plus vs. UnitedHealth Group Incorporated |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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