Correlation Between Aspen and ATA Creativity
Can any of the company-specific risk be diversified away by investing in both Aspen and ATA Creativity 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 Aspen and ATA Creativity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Group and ATA Creativity Global, you can compare the effects of market volatilities on Aspen and ATA Creativity 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 Aspen with a short position of ATA Creativity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen and ATA Creativity.
Diversification Opportunities for Aspen and ATA Creativity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aspen and ATA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Group and ATA Creativity Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA Creativity Global and Aspen 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 Aspen Group are associated (or correlated) with ATA Creativity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA Creativity Global has no effect on the direction of Aspen i.e., Aspen and ATA Creativity go up and down completely randomly.
Pair Corralation between Aspen and ATA Creativity
If you would invest (100.00) in Aspen Group on December 5, 2024 and sell it today you would earn a total of 100.00 from holding Aspen Group or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Aspen Group vs. ATA Creativity Global
Performance |
Timeline |
Aspen Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ATA Creativity Global |
Aspen and ATA Creativity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aspen and ATA Creativity
The main advantage of trading using opposite Aspen and ATA Creativity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen position performs unexpectedly, ATA Creativity 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 ATA Creativity will offset losses from the drop in ATA Creativity's long position.Aspen vs. ATA Creativity Global | Aspen vs. American Public Education | Aspen vs. Skillful Craftsman Education | Aspen vs. China Liberal Education |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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