Correlation Between Aspen and Wah Fu
Can any of the company-specific risk be diversified away by investing in both Aspen and Wah Fu 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 Wah Fu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Group and Wah Fu Education, you can compare the effects of market volatilities on Aspen and Wah Fu 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 Wah Fu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen and Wah Fu.
Diversification Opportunities for Aspen and Wah Fu
Pay attention - limited upside
The 3 months correlation between Aspen and Wah is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Group and Wah Fu Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wah Fu Education 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 Wah Fu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wah Fu Education has no effect on the direction of Aspen i.e., Aspen and Wah Fu go up and down completely randomly.
Pair Corralation between Aspen and Wah Fu
If you would invest 180.00 in Wah Fu Education on December 26, 2024 and sell it today you would lose (19.00) from holding Wah Fu Education or give up 10.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Aspen Group vs. Wah Fu Education
Performance |
Timeline |
Aspen Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Wah Fu Education |
Aspen and Wah Fu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aspen and Wah Fu
The main advantage of trading using opposite Aspen and Wah Fu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen position performs unexpectedly, Wah Fu 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 Wah Fu will offset losses from the drop in Wah Fu's long position.Aspen vs. ATA Creativity Global | Aspen vs. American Public Education | Aspen vs. Skillful Craftsman Education | Aspen vs. China Liberal Education |
Wah Fu vs. Four Seasons Education | Wah Fu vs. Sunlands Technology Group | Wah Fu vs. 51Talk Online Education | Wah Fu vs. Golden Sun 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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