Correlation Between Sunlands Technology and Exceed World
Can any of the company-specific risk be diversified away by investing in both Sunlands Technology and Exceed World 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 Sunlands Technology and Exceed World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunlands Technology Group and Exceed World, you can compare the effects of market volatilities on Sunlands Technology and Exceed World 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 Sunlands Technology with a short position of Exceed World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunlands Technology and Exceed World.
Diversification Opportunities for Sunlands Technology and Exceed World
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunlands and Exceed is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sunlands Technology Group and Exceed World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exceed World and Sunlands Technology 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 Sunlands Technology Group are associated (or correlated) with Exceed World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exceed World has no effect on the direction of Sunlands Technology i.e., Sunlands Technology and Exceed World go up and down completely randomly.
Pair Corralation between Sunlands Technology and Exceed World
Considering the 90-day investment horizon Sunlands Technology Group is expected to generate 0.52 times more return on investment than Exceed World. However, Sunlands Technology Group is 1.91 times less risky than Exceed World. It trades about 0.2 of its potential returns per unit of risk. Exceed World is currently generating about 0.02 per unit of risk. If you would invest 540.00 in Sunlands Technology Group on November 4, 2024 and sell it today you would earn a total of 126.00 from holding Sunlands Technology Group or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Sunlands Technology Group vs. Exceed World
Performance |
| Timeline |
| Sunlands Technology |
| Exceed World |
Sunlands Technology and Exceed World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunlands Technology and Exceed World
The main advantage of trading using opposite Sunlands Technology and Exceed World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunlands Technology position performs unexpectedly, Exceed World 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 Exceed World will offset losses from the drop in Exceed World's long position.| Sunlands Technology vs. Exceed World | Sunlands Technology vs. American Public Education | Sunlands Technology vs. Ihuman Inc | Sunlands Technology vs. Adtalem Global Education |
| Exceed World vs. Quality Online Education | Exceed World vs. Ihuman Inc | Exceed World vs. Sunlands Technology Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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