Correlation Between RENN Fund and Sunlands Technology
Can any of the company-specific risk be diversified away by investing in both RENN Fund 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 RENN Fund and Sunlands Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RENN Fund and Sunlands Technology Group, you can compare the effects of market volatilities on RENN Fund 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 RENN Fund with a short position of Sunlands Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of RENN Fund and Sunlands Technology.
Diversification Opportunities for RENN Fund and Sunlands Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between RENN and Sunlands is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding RENN Fund and Sunlands Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlands Technology and RENN Fund 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 RENN Fund 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 RENN Fund i.e., RENN Fund and Sunlands Technology go up and down completely randomly.
Pair Corralation between RENN Fund and Sunlands Technology
Considering the 90-day investment horizon RENN Fund is expected to generate 0.32 times more return on investment than Sunlands Technology. However, RENN Fund is 3.08 times less risky than Sunlands Technology. It trades about 0.18 of its potential returns per unit of risk. Sunlands Technology Group is currently generating about 0.04 per unit of risk. If you would invest 162.00 in RENN Fund on September 1, 2024 and sell it today you would earn a total of 115.00 from holding RENN Fund or generate 70.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RENN Fund vs. Sunlands Technology Group
Performance |
| Timeline |
| RENN Fund |
| Sunlands Technology |
RENN Fund and Sunlands Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RENN Fund and Sunlands Technology
The main advantage of trading using opposite RENN Fund and Sunlands Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RENN Fund 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.| RENN Fund vs. Ellsworth Convertible Growth | RENN Fund vs. Delaware Investments Florida | RENN Fund vs. Nuveen New Jersey | RENN Fund vs. John Hancock Hedged |
| Sunlands Technology vs. American Public Education | Sunlands Technology vs. ATA Creativity Global | Sunlands Technology vs. Cogna Educacao SA | 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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