Correlation Between Tarena Intl and Golden Sun

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Can any of the company-specific risk be diversified away by investing in both Tarena Intl and Golden Sun 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 Golden Sun 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 Golden Sun Education, you can compare the effects of market volatilities on Tarena Intl and Golden Sun 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 Golden Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tarena Intl and Golden Sun.

Diversification Opportunities for Tarena Intl and Golden Sun

TarenaGoldenDiversified AwayTarenaGoldenDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Tarena and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tarena Intl Adr and Golden Sun Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Sun 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 Golden Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Sun Education has no effect on the direction of Tarena Intl i.e., Tarena Intl and Golden Sun go up and down completely randomly.

Pair Corralation between Tarena Intl and Golden Sun

If you would invest (100.00) in Tarena Intl Adr on November 27, 2024 and sell it today you would earn a total of  100.00  from holding Tarena Intl Adr or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Tarena Intl Adr  vs.  Golden Sun Education

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-5051015
JavaScript chart by amCharts 3.21.15TEDU GSUN
       Timeline  
Tarena Intl Adr 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Tarena Intl Adr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Tarena Intl is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Golden Sun Education 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Golden Sun Education are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Golden Sun displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.533.544.55

Tarena Intl and Golden Sun Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.0050.0100.015
JavaScript chart by amCharts 3.21.15TEDU GSUN
       Returns  

Pair Trading with Tarena Intl and Golden Sun

The main advantage of trading using opposite Tarena Intl and Golden Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tarena Intl position performs unexpectedly, Golden Sun 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 Golden Sun will offset losses from the drop in Golden Sun's long position.
The idea behind Tarena Intl Adr and Golden Sun Education 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.
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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