Correlation Between Elite Education and Acushnet Holdings
Can any of the company-specific risk be diversified away by investing in both Elite Education and Acushnet Holdings 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 Elite Education and Acushnet Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elite Education Group and Acushnet Holdings Corp, you can compare the effects of market volatilities on Elite Education and Acushnet Holdings 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 Elite Education with a short position of Acushnet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Education and Acushnet Holdings.
Diversification Opportunities for Elite Education and Acushnet Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elite and Acushnet is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Elite Education Group and Acushnet Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acushnet Holdings Corp and Elite Education 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 Elite Education Group are associated (or correlated) with Acushnet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acushnet Holdings Corp has no effect on the direction of Elite Education i.e., Elite Education and Acushnet Holdings go up and down completely randomly.
Pair Corralation between Elite Education and Acushnet Holdings
Given the investment horizon of 90 days Elite Education Group is expected to under-perform the Acushnet Holdings. In addition to that, Elite Education is 3.2 times more volatile than Acushnet Holdings Corp. It trades about -0.01 of its total potential returns per unit of risk. Acushnet Holdings Corp is currently generating about 0.02 per unit of volatility. If you would invest 6,173 in Acushnet Holdings Corp on November 9, 2024 and sell it today you would earn a total of 398.00 from holding Acushnet Holdings Corp or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.75% |
| Values | Daily Returns |
Elite Education Group vs. Acushnet Holdings Corp
Performance |
| Timeline |
| Elite Education Group |
| Acushnet Holdings Corp |
Elite Education and Acushnet Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Education and Acushnet Holdings
The main advantage of trading using opposite Elite Education and Acushnet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Education position performs unexpectedly, Acushnet Holdings 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 Acushnet Holdings will offset losses from the drop in Acushnet Holdings' long position.| Elite Education vs. Golden Sun Education | Elite Education vs. Jianzhi Education Technology | Elite Education vs. Genius Group | Elite Education vs. Lixiang Education Holding |
| Acushnet Holdings vs. YETI Holdings | Acushnet Holdings vs. Madison Square Garden | Acushnet Holdings vs. Six Flags Entertainment | Acushnet Holdings vs. Johnson Outdoors |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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