Correlation Between Jianzhi Education and Edgewell Personal

Can any of the company-specific risk be diversified away by investing in both Jianzhi Education and Edgewell Personal 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 Jianzhi Education and Edgewell Personal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jianzhi Education Technology and Edgewell Personal Care, you can compare the effects of market volatilities on Jianzhi Education and Edgewell Personal 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 Jianzhi Education with a short position of Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and Edgewell Personal.

Diversification Opportunities for Jianzhi Education and Edgewell Personal

0.31

Correlation Coefficient

Jianzhi Education  Edgewell Personal

Weak diversification

The 3 months correlation between Jianzhi and Edgewell is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care and Jianzhi Education 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 Jianzhi Education Technology are associated (or correlated) with Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and Edgewell Personal go up and down completely randomly.

Pair Corralation between Jianzhi Education and Edgewell Personal

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to generate 3.22 times more return on investment than Edgewell Personal. However, Jianzhi Education is 3.22 times more volatile than Edgewell Personal Care. It trades about 0.03 of its potential returns per unit of risk. Edgewell Personal Care is currently generating about -0.1 per unit of risk. If you would invest  102.00  in Jianzhi Education Technology on November 28, 2024 and sell it today you would earn a total of  0.00  from holding Jianzhi Education Technology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jianzhi Education Technology  vs.  Edgewell Personal Care

Jianzhi Education

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jianzhi Education Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Jianzhi Education may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Edgewell Personal Care

Risk-Adjusted Performance

Very Weak

Over the last 90 days Edgewell Personal Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Jianzhi Education and Edgewell Personal

The main advantage of trading using opposite Jianzhi Education and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianzhi Education position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.

The idea behind Jianzhi Education Technology and Edgewell Personal Care 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.