Correlation Between Aspen and Sunlands Technology
Can any of the company-specific risk be diversified away by investing in both Aspen and Sunlands Technology 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 Sunlands Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Group and Sunlands Technology Group, you can compare the effects of market volatilities on Aspen and Sunlands Technology 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 Sunlands Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen and Sunlands Technology.
Diversification Opportunities for Aspen and Sunlands Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aspen and Sunlands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Group and Sunlands Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlands Technology 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 Sunlands Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunlands Technology has no effect on the direction of Aspen i.e., Aspen and Sunlands Technology go up and down completely randomly.
Pair Corralation between Aspen and Sunlands Technology
If you would invest 546.00 in Sunlands Technology Group on December 5, 2024 and sell it today you would earn a total of 116.00 from holding Sunlands Technology Group or generate 21.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Aspen Group vs. Sunlands Technology Group
Performance |
Timeline |
Aspen Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Sunlands Technology |
Aspen and Sunlands Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aspen and Sunlands Technology
The main advantage of trading using opposite Aspen and Sunlands Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen position performs unexpectedly, Sunlands Technology 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 Sunlands Technology will offset losses from the drop in Sunlands Technology'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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