Correlation Between Jianzhi Education and Elite Education

Can any of the company-specific risk be diversified away by investing in both Jianzhi Education and Elite 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 Jianzhi Education and Elite Education 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 Elite Education Group, you can compare the effects of market volatilities on Jianzhi Education and Elite 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 Jianzhi Education with a short position of Elite Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and Elite Education.

Diversification Opportunities for Jianzhi Education and Elite Education

0.43

Correlation Coefficient

Jianzhi Education  Elite Education

Very weak diversification

The 3 months correlation between Jianzhi and Elite is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and Elite Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Education Group 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 Elite Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Education Group has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and Elite Education go up and down completely randomly.

Pair Corralation between Jianzhi Education and Elite Education

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to under-perform the Elite Education. But the stock apears to be less risky and, when comparing its historical volatility, Jianzhi Education Technology is 1.08 times less risky than Elite Education. The stock trades about -0.28 of its potential returns per unit of risk. The Elite Education Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  71.00  in Elite Education Group on May 3, 2025 and sell it today you would lose (7.00) from holding Elite Education Group or give up 9.86% of portfolio value over 90 days.

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

Jianzhi Education Technology  vs.  Elite Education Group

Jianzhi Education

Risk-Adjusted Performance

Very Weak

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 unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Elite Education Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Elite Education Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile forward indicators, Elite Education may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Jianzhi Education and Elite Education

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

The idea behind Jianzhi Education Technology and Elite Education Group 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.