Correlation Between Tarena Intl and Four Seasons
Can any of the company-specific risk be diversified away by investing in both Tarena Intl and Four Seasons 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 Tarena Intl and Four Seasons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tarena Intl Adr and Four Seasons Education, you can compare the effects of market volatilities on Tarena Intl and Four Seasons 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 Tarena Intl with a short position of Four Seasons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tarena Intl and Four Seasons.
Diversification Opportunities for Tarena Intl and Four Seasons
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tarena and Four is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tarena Intl Adr and Four Seasons Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Seasons Education and Tarena Intl 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 Tarena Intl Adr are associated (or correlated) with Four Seasons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Seasons Education has no effect on the direction of Tarena Intl i.e., Tarena Intl and Four Seasons go up and down completely randomly.
Pair Corralation between Tarena Intl and Four Seasons
If you would invest 242.00 in Tarena Intl Adr on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Tarena Intl Adr or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Tarena Intl Adr vs. Four Seasons Education
Performance |
| Timeline |
| Tarena Intl Adr |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Four Seasons Education |
Tarena Intl and Four Seasons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tarena Intl and Four Seasons
The main advantage of trading using opposite Tarena Intl and Four Seasons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tarena Intl position performs unexpectedly, Four Seasons 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 Four Seasons will offset losses from the drop in Four Seasons' long position.| Tarena Intl vs. Bright Scholar Education | Tarena Intl vs. Laureate Education | Tarena Intl vs. China Liberal Education | Tarena Intl vs. Quality Online Education |
| Four Seasons vs. American Public Education | Four Seasons vs. Lincoln Educational Services | Four Seasons 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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