Correlation Between Legacy Education and Ever Glory

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

By analyzing existing cross correlation between Legacy Education Alliance and Ever Glory International Group, you can compare the effects of market volatilities on Legacy Education and Ever Glory 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 Legacy Education with a short position of Ever Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legacy Education and Ever Glory.

Diversification Opportunities for Legacy Education and Ever Glory

-0.5

Correlation Coefficient

Legacy Education  Ever Glory

Very good diversification

The 3 months correlation between Legacy and Ever is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Legacy Education Alliance and Ever Glory International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Glory Internati and Legacy 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 Legacy Education Alliance are associated (or correlated) with Ever Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Glory Internati has no effect on the direction of Legacy Education i.e., Legacy Education and Ever Glory go up and down completely randomly.

Pair Corralation between Legacy Education and Ever Glory

Given the investment horizon of 90 days Legacy Education Alliance is expected to generate 0.7 times more return on investment than Ever Glory. However, Legacy Education Alliance is 1.43 times less risky than Ever Glory. It trades about 0.12 of its potential returns per unit of risk. Ever Glory International Group is currently generating about -0.12 per unit of risk. If you would invest  0.02  in Legacy Education Alliance on August 19, 2025 and sell it today you would earn a total of  0.01  from holding Legacy Education Alliance or generate 50.0% return on investment over 90 days.

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

Legacy Education Alliance  vs.  Ever Glory International Group

Legacy Education Alliance

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Legacy Education Alliance are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Legacy Education demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Ever Glory Internati

Risk-Adjusted Performance

Weakest

Over the last 90 days Ever Glory International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Legacy Education and Ever Glory

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

The idea behind Legacy Education Alliance and Ever Glory International 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.