Correlation Between Golden Sun and ATA Creativity
Can any of the company-specific risk be diversified away by investing in both Golden Sun 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 Golden Sun and ATA Creativity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Sun Education and ATA Creativity Global, you can compare the effects of market volatilities on Golden Sun 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 Golden Sun with a short position of ATA Creativity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Sun and ATA Creativity.
Diversification Opportunities for Golden Sun and ATA Creativity
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Golden and ATA is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding Golden Sun Education 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 Golden Sun 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 Golden Sun Education 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 Golden Sun i.e., Golden Sun and ATA Creativity go up and down completely randomly.
Pair Corralation between Golden Sun and ATA Creativity
Given the investment horizon of 90 days Golden Sun Education is expected to under-perform the ATA Creativity. In addition to that, Golden Sun is 3.19 times more volatile than ATA Creativity Global. It trades about -0.06 of its total potential returns per unit of risk. ATA Creativity Global is currently generating about 0.05 per unit of volatility. If you would invest 100.00 in ATA Creativity Global on August 28, 2024 and sell it today you would earn a total of 2.00 from holding ATA Creativity Global or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Sun Education vs. ATA Creativity Global
Performance |
| Timeline |
| Golden Sun Education |
| ATA Creativity Global |
Golden Sun and ATA Creativity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Sun and ATA Creativity
The main advantage of trading using opposite Golden Sun and ATA Creativity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Sun 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.| Golden Sun vs. Wah Fu Education | Golden Sun vs. QuantaSing Group Limited | Golden Sun vs. Genius Group | Golden Sun vs. China Liberal 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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