Correlation Between First High and Four Seasons
Can any of the company-specific risk be diversified away by investing in both First High and Four Seasons 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 First High and Four Seasons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First High School Education and Four Seasons Education, you can compare the effects of market volatilities on First High and Four Seasons 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 First High with a short position of Four Seasons. Check out your portfolio center. Please also check ongoing floating volatility patterns of First High and Four Seasons.
Diversification Opportunities for First High and Four Seasons
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Four is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding First High School Education and Four Seasons Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Seasons Education and First High 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 First High School Education are associated (or correlated) with Four Seasons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Seasons Education has no effect on the direction of First High i.e., First High and Four Seasons go up and down completely randomly.
Pair Corralation between First High and Four Seasons
If you would invest 19.00 in First High School Education on September 3, 2024 and sell it today you would earn a total of 0.00 from holding First High School Education or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
First High School Education vs. Four Seasons Education
Performance |
| Timeline |
| First High School |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Four Seasons Education |
First High and Four Seasons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First High and Four Seasons
The main advantage of trading using opposite First High and Four Seasons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First High position performs unexpectedly, Four Seasons 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 Four Seasons will offset losses from the drop in Four Seasons' long position.| First High vs. Gaotu Techedu DRC | First High vs. New Oriental Education | First High vs. Sunlands Technology Group | First High vs. Ihuman Inc |
| Four Seasons vs. Wah Fu Education | Four Seasons vs. Sunlands Technology Group | Four Seasons vs. 51Talk Online Education | Four Seasons 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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