Correlation Between Massimo Group and Sunlands Technology

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Can any of the company-specific risk be diversified away by investing in both Massimo Group 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 Massimo Group and Sunlands Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massimo Group Common and Sunlands Technology Group, you can compare the effects of market volatilities on Massimo Group 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 Massimo Group with a short position of Sunlands Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massimo Group and Sunlands Technology.

Diversification Opportunities for Massimo Group and Sunlands Technology

MassimoSunlandsDiversified AwayMassimoSunlandsDiversified Away100%
0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Massimo and Sunlands is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Massimo Group Common and Sunlands Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlands Technology and Massimo Group 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 Massimo Group Common 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 Massimo Group i.e., Massimo Group and Sunlands Technology go up and down completely randomly.

Pair Corralation between Massimo Group and Sunlands Technology

Given the investment horizon of 90 days Massimo Group is expected to generate 1.12 times less return on investment than Sunlands Technology. But when comparing it to its historical volatility, Massimo Group Common is 1.15 times less risky than Sunlands Technology. It trades about 0.02 of its potential returns per unit of risk. Sunlands Technology Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  875.00  in Sunlands Technology Group on November 27, 2024 and sell it today you would lose (236.00) from holding Sunlands Technology Group or give up 26.97% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy47.87%
ValuesDaily Returns

Massimo Group Common  vs.  Sunlands Technology Group

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-5051015
JavaScript chart by amCharts 3.21.15MAMO STG
       Timeline  
Massimo Group Common 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Massimo Group Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Massimo Group is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.62.833.23.43.6
Sunlands Technology 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sunlands Technology Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sunlands Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb5.566.57

Massimo Group and Sunlands Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-16.31-12.22-8.12-4.030.03.938.0612.216.3420.47 0.0120.0130.0140.0150.0160.017
JavaScript chart by amCharts 3.21.15MAMO STG
       Returns  

Pair Trading with Massimo Group and Sunlands Technology

The main advantage of trading using opposite Massimo Group and Sunlands Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massimo Group 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.
The idea behind Massimo Group Common and Sunlands Technology Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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