Correlation Between Wah Fu and Takung Art
Can any of the company-specific risk be diversified away by investing in both Wah Fu and Takung Art 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 Wah Fu and Takung Art into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wah Fu Education and Takung Art Co, you can compare the effects of market volatilities on Wah Fu and Takung Art 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 Wah Fu with a short position of Takung Art. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wah Fu and Takung Art.
Diversification Opportunities for Wah Fu and Takung Art
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wah and Takung is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Wah Fu Education and Takung Art Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takung Art and Wah Fu 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 Wah Fu Education are associated (or correlated) with Takung Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takung Art has no effect on the direction of Wah Fu i.e., Wah Fu and Takung Art go up and down completely randomly.
Pair Corralation between Wah Fu and Takung Art
If you would invest 167.00 in Wah Fu Education on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Wah Fu Education or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Wah Fu Education vs. Takung Art Co
Performance |
| Timeline |
| Wah Fu Education |
| Takung Art |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wah Fu and Takung Art Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wah Fu and Takung Art
The main advantage of trading using opposite Wah Fu and Takung Art positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wah Fu position performs unexpectedly, Takung Art 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 Takung Art will offset losses from the drop in Takung Art's long position.| Wah Fu vs. Four Seasons Education | Wah Fu vs. Sunlands Technology Group | Wah Fu vs. 51Talk Online Education | Wah Fu vs. Golden Sun Education |
| Takung Art vs. Oriental Culture Holding | Takung Art vs. Dolphin Entertainment | Takung Art vs. Hall of Fame | Takung Art vs. Wisekey International Holding |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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