Correlation Between First High and Wah Fu
Can any of the company-specific risk be diversified away by investing in both First High and Wah Fu 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 Wah Fu 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 Wah Fu Education, you can compare the effects of market volatilities on First High and Wah Fu 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 Wah Fu. Check out your portfolio center. Please also check ongoing floating volatility patterns of First High and Wah Fu.
Diversification Opportunities for First High and Wah Fu
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Wah is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First High School Education and Wah Fu Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wah Fu 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 Wah Fu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wah Fu Education has no effect on the direction of First High i.e., First High and Wah Fu go up and down completely randomly.
Pair Corralation between First High and Wah Fu
If you would invest 167.00 in Wah Fu Education on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Wah Fu Education or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
First High School Education vs. Wah Fu Education
Performance |
| Timeline |
| First High School |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wah Fu Education |
First High and Wah Fu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First High and Wah Fu
The main advantage of trading using opposite First High and Wah Fu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First High position performs unexpectedly, Wah Fu 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 Wah Fu will offset losses from the drop in Wah Fu's 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 |
| Wah Fu vs. Four Seasons Education | Wah Fu vs. Sunlands Technology Group | Wah Fu vs. 51Talk Online Education | Wah Fu vs. Golden Sun 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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