Correlation Between Genius and ATA Creativity
Can any of the company-specific risk be diversified away by investing in both Genius and ATA Creativity 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 Genius and ATA Creativity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Group and ATA Creativity Global, you can compare the effects of market volatilities on Genius and ATA Creativity 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 Genius with a short position of ATA Creativity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius and ATA Creativity.
Diversification Opportunities for Genius and ATA Creativity
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genius and ATA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Genius Group and ATA Creativity Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA Creativity Global and Genius 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 Genius Group are associated (or correlated) with ATA Creativity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA Creativity Global has no effect on the direction of Genius i.e., Genius and ATA Creativity go up and down completely randomly.
Pair Corralation between Genius and ATA Creativity
Considering the 90-day investment horizon Genius Group is expected to generate 6.74 times more return on investment than ATA Creativity. However, Genius is 6.74 times more volatile than ATA Creativity Global. It trades about 0.11 of its potential returns per unit of risk. ATA Creativity Global is currently generating about 0.05 per unit of risk. If you would invest 72.00 in Genius Group on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Genius Group or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genius Group vs. ATA Creativity Global
Performance |
| Timeline |
| Genius Group |
| ATA Creativity Global |
Genius and ATA Creativity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius and ATA Creativity
The main advantage of trading using opposite Genius and ATA Creativity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius position performs unexpectedly, ATA Creativity 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 ATA Creativity will offset losses from the drop in ATA Creativity's long position.| Genius vs. American Public Education | Genius vs. Lincoln Educational Services | Genius vs. Adtalem Global Education |
| ATA Creativity vs. Universal Technical Institute | ATA Creativity vs. Cogna Educacao SA | ATA Creativity vs. Sunlands Technology Group | ATA Creativity vs. American Public 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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