Correlation Between QuantaSing Group and Golden Sun

Can any of the company-specific risk be diversified away by investing in both QuantaSing Group and Golden Sun 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 QuantaSing Group and Golden Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QuantaSing Group Limited and Golden Sun Education, you can compare the effects of market volatilities on QuantaSing Group and Golden Sun 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 QuantaSing Group with a short position of Golden Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of QuantaSing Group and Golden Sun.

Diversification Opportunities for QuantaSing Group and Golden Sun

0.19

Correlation Coefficient

QuantaSing Group  Golden Sun

Average diversification

The 3 months correlation between QuantaSing and Golden is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding QuantaSing Group Limited and Golden Sun Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Sun Education and QuantaSing Group 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 QuantaSing Group Limited are associated (or correlated) with Golden Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Sun Education has no effect on the direction of QuantaSing Group i.e., QuantaSing Group and Golden Sun go up and down completely randomly.

Pair Corralation between QuantaSing Group and Golden Sun

Considering the 90-day investment horizon QuantaSing Group Limited is expected to generate 0.79 times more return on investment than Golden Sun. However, QuantaSing Group Limited is 1.26 times less risky than Golden Sun. It trades about 0.15 of its potential returns per unit of risk. Golden Sun Education is currently generating about 0.08 per unit of risk. If you would invest  218.00  in QuantaSing Group Limited on December 29, 2024 and sell it today you would earn a total of  88.00  from holding QuantaSing Group Limited or generate 40.37% return on investment over 90 days.

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

QuantaSing Group Limited  vs.  Golden Sun Education

QuantaSing Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in QuantaSing Group Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, QuantaSing Group reported solid returns over the last few months and may actually be approaching a breakup point.

Golden Sun Education

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Sun Education are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Golden Sun displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QuantaSing Group and Golden Sun

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

The idea behind QuantaSing Group Limited and Golden Sun Education 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .