Correlation Between Jianzhi Education and Fuse Science

Can any of the company-specific risk be diversified away by investing in both Jianzhi Education and Fuse Science 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 Jianzhi Education and Fuse Science into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jianzhi Education Technology and Fuse Science, you can compare the effects of market volatilities on Jianzhi Education and Fuse Science 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 Jianzhi Education with a short position of Fuse Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and Fuse Science.

Diversification Opportunities for Jianzhi Education and Fuse Science

0.24

Correlation Coefficient

Jianzhi Education  Fuse Science

Modest diversification

The 3 months correlation between Jianzhi and Fuse is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and Fuse Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuse Science and Jianzhi 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 Jianzhi Education Technology are associated (or correlated) with Fuse Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuse Science has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and Fuse Science go up and down completely randomly.

Pair Corralation between Jianzhi Education and Fuse Science

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to under-perform the Fuse Science. But the stock apears to be less risky and, when comparing its historical volatility, Jianzhi Education Technology is 2.64 times less risky than Fuse Science. The stock trades about -0.02 of its potential returns per unit of risk. The Fuse Science is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  0.32  in Fuse Science on September 4, 2025 and sell it today you would lose (0.03) from holding Fuse Science or give up 9.38% of portfolio value over 90 days.

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

Jianzhi Education Technology  vs.  Fuse Science

Jianzhi Education

Risk-Adjusted Performance

Weakest

Over the last 90 days Jianzhi Education Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Jianzhi Education is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Fuse Science

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fuse Science are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Fuse Science reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jianzhi Education and Fuse Science

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

The idea behind Jianzhi Education Technology and Fuse Science 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.

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.