Correlation Between Exceed World and Golden Sun
Can any of the company-specific risk be diversified away by investing in both Exceed World and Golden Sun 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 Exceed World and Golden Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exceed World and Golden Sun Education, you can compare the effects of market volatilities on Exceed World and Golden Sun 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 Exceed World with a short position of Golden Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exceed World and Golden Sun.
Diversification Opportunities for Exceed World and Golden Sun
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exceed and Golden is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Exceed World and Golden Sun Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Sun Education and Exceed World 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 Exceed World are associated (or correlated) with Golden Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Sun Education has no effect on the direction of Exceed World i.e., Exceed World and Golden Sun go up and down completely randomly.
Pair Corralation between Exceed World and Golden Sun
Given the investment horizon of 90 days Exceed World is expected to generate 1.04 times more return on investment than Golden Sun. However, Exceed World is 1.04 times more volatile than Golden Sun Education. It trades about 0.07 of its potential returns per unit of risk. Golden Sun Education is currently generating about 0.02 per unit of risk. If you would invest 51.00 in Exceed World on September 2, 2024 and sell it today you would earn a total of 79.00 from holding Exceed World or generate 154.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exceed World vs. Golden Sun Education
Performance |
| Timeline |
| Exceed World |
| Golden Sun Education |
Exceed World and Golden Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exceed World and Golden Sun
The main advantage of trading using opposite Exceed World and Golden Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exceed World position performs unexpectedly, Golden Sun 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 Golden Sun will offset losses from the drop in Golden Sun's long position.| Exceed World vs. Quality Online Education | Exceed World vs. Ihuman Inc | Exceed World vs. Sunlands Technology Group |
| Golden Sun vs. Wah Fu Education | Golden Sun vs. QuantaSing Group Limited | Golden Sun vs. Genius Group | Golden Sun vs. China Liberal Education |
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 CEOs Directory module to screen CEOs from public companies around the world.
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