Correlation Analysis Between Ambow Education and China Distance

This module allows you to analyze existing cross correlation between Ambow Education Holding Ltd Am and China Distance Education Holdin. You can compare the effects of market volatilities on Ambow Education and China Distance 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 Ambow Education with a short position of China Distance. See also your portfolio center. Please also check ongoing floating volatility patterns of Ambow Education and China Distance.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Ambow Education Hold  
00

Risk-Adjusted Performance

Over the last 30 days Ambow Education Holding Ltd Am has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough conflicting performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in December 2019. The existing mess may also be a sign of long standing up-swing for the corporation partners.
China Distance Educa  
2323

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in China Distance Education Holdin are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, China Distance revealed solid returns over the last few months and may actually be approaching a breakup point.

Ambow Education and China Distance Volatility Contrast

 Predicted Return Density 
      Returns 

Ambow Education Holding Ltd Am  vs.  China Distance Education Holdi

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Ambow Education Holding Ltd Am is expected to under-perform the China Distance. In addition to that, Ambow Education is 2.05 times more volatile than China Distance Education Holdin. It trades about -0.05 of its total potential returns per unit of risk. China Distance Education Holdin is currently generating about 0.35 per unit of volatility. If you would invest  424.00  in China Distance Education Holdin on October 23, 2019 and sell it today you would earn a total of  376.00  from holding China Distance Education Holdin or generate 88.68% return on investment over 30 days.

Pair Corralation between Ambow Education and China Distance

-0.69
Time Period3 Months [change]
DirectionNegative 
StrengthWeak
Accuracy88.73%
ValuesDaily Returns

Diversification Opportunities for Ambow Education and China Distance

Ambow Education Holding Ltd Am diversification synergy

Excellent diversification

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