Correlation Between Hailiang Education and Fossil
Can any of the company-specific risk be diversified away by investing in both Hailiang Education and Fossil 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 Hailiang Education and Fossil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hailiang Education Group and Fossil Group, you can compare the effects of market volatilities on Hailiang Education and Fossil 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 Hailiang Education with a short position of Fossil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hailiang Education and Fossil.
Diversification Opportunities for Hailiang Education and Fossil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hailiang and Fossil is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hailiang Education Group and Fossil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group and Hailiang 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 Hailiang Education Group are associated (or correlated) with Fossil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group has no effect on the direction of Hailiang Education i.e., Hailiang Education and Fossil go up and down completely randomly.
Pair Corralation between Hailiang Education and Fossil
If you would invest (100.00) in Hailiang Education Group on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Hailiang Education 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 |
Hailiang Education Group vs. Fossil Group
Performance |
| Timeline |
| Hailiang Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fossil Group |
Hailiang Education and Fossil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hailiang Education and Fossil
The main advantage of trading using opposite Hailiang Education and Fossil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hailiang Education position performs unexpectedly, Fossil 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 Fossil will offset losses from the drop in Fossil's long position.| Hailiang Education vs. Aduro Clean Technologies | Hailiang Education vs. Anterix | Hailiang Education vs. HydroGraph Clean Power | Hailiang Education vs. Joby Aviation |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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