Correlation Between Sunlands Technology and Pinduoduo
Can any of the company-specific risk be diversified away by investing in both Sunlands Technology and Pinduoduo 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 Sunlands Technology and Pinduoduo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunlands Technology Group and Pinduoduo, you can compare the effects of market volatilities on Sunlands Technology and Pinduoduo 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 Sunlands Technology with a short position of Pinduoduo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunlands Technology and Pinduoduo.
Diversification Opportunities for Sunlands Technology and Pinduoduo
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunlands and Pinduoduo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sunlands Technology Group and Pinduoduo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinduoduo and Sunlands Technology 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 Sunlands Technology Group are associated (or correlated) with Pinduoduo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinduoduo has no effect on the direction of Sunlands Technology i.e., Sunlands Technology and Pinduoduo go up and down completely randomly.
Pair Corralation between Sunlands Technology and Pinduoduo
Considering the 90-day investment horizon Sunlands Technology Group is expected to under-perform the Pinduoduo. In addition to that, Sunlands Technology is 1.56 times more volatile than Pinduoduo. It trades about -0.03 of its total potential returns per unit of risk. Pinduoduo is currently generating about 0.01 per unit of volatility. If you would invest 12,459 in Pinduoduo on February 2, 2024 and sell it today you would lose (10.00) from holding Pinduoduo or give up 0.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sunlands Technology Group vs. Pinduoduo
Performance |
Timeline |
Sunlands Technology |
Pinduoduo |
Sunlands Technology and Pinduoduo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunlands Technology and Pinduoduo
The main advantage of trading using opposite Sunlands Technology and Pinduoduo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunlands Technology position performs unexpectedly, Pinduoduo 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 Pinduoduo will offset losses from the drop in Pinduoduo's long position.Sunlands Technology vs. Exceed World | Sunlands Technology vs. American Public Education | Sunlands Technology vs. IhumanInc | Sunlands Technology vs. Adtalem Global Education |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |