Correlation Between Lixiang Education and Visionary Education
Can any of the company-specific risk be diversified away by investing in both Lixiang Education and Visionary Education 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 Lixiang Education and Visionary Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lixiang Education Holding and Visionary Education Technology, you can compare the effects of market volatilities on Lixiang Education and Visionary Education 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 Lixiang Education with a short position of Visionary Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixiang Education and Visionary Education.
Diversification Opportunities for Lixiang Education and Visionary Education
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lixiang and Visionary is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lixiang Education Holding and Visionary Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visionary Education and Lixiang Education 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 Lixiang Education Holding are associated (or correlated) with Visionary Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visionary Education has no effect on the direction of Lixiang Education i.e., Lixiang Education and Visionary Education go up and down completely randomly.
Pair Corralation between Lixiang Education and Visionary Education
Given the investment horizon of 90 days Lixiang Education Holding is expected to generate 0.99 times more return on investment than Visionary Education. However, Lixiang Education Holding is 1.01 times less risky than Visionary Education. It trades about 0.02 of its potential returns per unit of risk. Visionary Education Technology is currently generating about -0.01 per unit of risk. If you would invest 5,500 in Lixiang Education Holding on October 20, 2024 and sell it today you would lose (5,008) from holding Lixiang Education Holding or give up 91.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.65% |
| Values | Daily Returns |
Lixiang Education Holding vs. Visionary Education Technology
Performance |
| Timeline |
| Lixiang Education Holding |
| Visionary Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lixiang Education and Visionary Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixiang Education and Visionary Education
The main advantage of trading using opposite Lixiang Education and Visionary Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixiang Education position performs unexpectedly, Visionary Education 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 Visionary Education will offset losses from the drop in Visionary Education's long position.| Lixiang Education vs. China Liberal Education | Lixiang Education vs. Four Seasons Education | Lixiang Education vs. Jianzhi Education Technology | Lixiang Education vs. Elite Education Group |
| Visionary Education vs. Sunlands Technology Group | Visionary Education vs. Ihuman Inc | Visionary Education vs. Adtalem Global Education | Visionary Education vs. Wah Fu 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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