Correlation Between Golden Sun and Sunlands Technology
Can any of the company-specific risk be diversified away by investing in both Golden Sun and Sunlands Technology 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 Sunlands Technology 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 Sunlands Technology Group, you can compare the effects of market volatilities on Golden Sun and Sunlands Technology 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 Sunlands Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Sun and Sunlands Technology.
Diversification Opportunities for Golden Sun and Sunlands Technology
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Sunlands is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Golden Sun Education and Sunlands Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlands Technology 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 Sunlands Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunlands Technology has no effect on the direction of Golden Sun i.e., Golden Sun and Sunlands Technology go up and down completely randomly.
Pair Corralation between Golden Sun and Sunlands Technology
Given the investment horizon of 90 days Golden Sun Education is expected to generate 2.19 times more return on investment than Sunlands Technology. However, Golden Sun is 2.19 times more volatile than Sunlands Technology Group. It trades about -0.06 of its potential returns per unit of risk. Sunlands Technology Group is currently generating about -0.19 per unit of risk. If you would invest 352.00 in Golden Sun Education on August 28, 2024 and sell it today you would lose (54.00) from holding Golden Sun Education or give up 15.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Sun Education vs. Sunlands Technology Group
Performance |
| Timeline |
| Golden Sun Education |
| Sunlands Technology |
Golden Sun and Sunlands Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Sun and Sunlands Technology
The main advantage of trading using opposite Golden Sun and Sunlands Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Sun position performs unexpectedly, Sunlands Technology 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 Sunlands Technology will offset losses from the drop in Sunlands Technology'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 |
| Sunlands Technology vs. American Public Education | Sunlands Technology vs. Lincoln Educational Services | Sunlands Technology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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