Correlation Between Meta Platforms and Ambow Education
Can any of the company-specific risk be diversified away by investing in both Meta Platforms and Ambow Education 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 Meta Platforms and Ambow Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and Ambow Education Holding, you can compare the effects of market volatilities on Meta Platforms and Ambow Education 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 Meta Platforms with a short position of Ambow Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Ambow Education.
Diversification Opportunities for Meta Platforms and Ambow Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Meta and Ambow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and Ambow Education Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambow Education Holding and Meta Platforms 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 Meta Platforms are associated (or correlated) with Ambow Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambow Education Holding has no effect on the direction of Meta Platforms i.e., Meta Platforms and Ambow Education go up and down completely randomly.
Pair Corralation between Meta Platforms and Ambow Education
If you would invest 166.00 in Ambow Education Holding on January 19, 2024 and sell it today you would lose (5.00) from holding Ambow Education Holding or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Meta Platforms vs. Ambow Education Holding
Performance |
| Timeline |
| Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ambow Education Holding |
Meta Platforms and Ambow Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Platforms and Ambow Education
The main advantage of trading using opposite Meta Platforms and Ambow Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, Ambow Education 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 Ambow Education will offset losses from the drop in Ambow Education's long position.| Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
| Ambow Education vs. Visionary Education Technology | Ambow Education vs. IhumanInc | Ambow Education vs. Jianzhi Education Technology | Ambow Education vs. 17 Education Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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