Correlation Between Golden Sun and Four Seasons
Can any of the company-specific risk be diversified away by investing in both Golden Sun 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 Golden Sun and Four Seasons 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 Four Seasons Education, you can compare the effects of market volatilities on Golden Sun 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 Golden Sun with a short position of Four Seasons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Sun and Four Seasons.
Diversification Opportunities for Golden Sun and Four Seasons
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and Four is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Golden Sun 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 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 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 Golden Sun i.e., Golden Sun and Four Seasons go up and down completely randomly.
Pair Corralation between Golden Sun and Four Seasons
Given the investment horizon of 90 days Golden Sun Education is expected to under-perform the Four Seasons. In addition to that, Golden Sun is 3.95 times more volatile than Four Seasons Education. It trades about -0.06 of its total potential returns per unit of risk. Four Seasons Education is currently generating about -0.24 per unit of volatility. If you would invest 1,209 in Four Seasons Education on August 28, 2024 and sell it today you would lose (118.00) from holding Four Seasons Education or give up 9.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Sun Education vs. Four Seasons Education
Performance |
| Timeline |
| Golden Sun Education |
| Four Seasons Education |
Golden Sun and Four Seasons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Sun and Four Seasons
The main advantage of trading using opposite Golden Sun and Four Seasons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Sun 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.| Golden Sun vs. Wah Fu Education | Golden Sun vs. QuantaSing Group Limited | Golden Sun vs. Genius Group | Golden Sun vs. China Liberal Education |
| Four Seasons vs. American Public Education | Four Seasons vs. Lincoln Educational Services | Four Seasons vs. Adtalem Global 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |