Correlation Between TAL Education and Kentucky First

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

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

Diversification Opportunities for TAL Education and Kentucky First

0.16

Correlation Coefficient

TAL Education  Kentucky First

Average diversification

The 3 months correlation between TAL and Kentucky is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding TAL Education Group and Kentucky First Federal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kentucky First Federal and TAL 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 TAL Education Group are associated (or correlated) with Kentucky First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kentucky First Federal has no effect on the direction of TAL Education i.e., TAL Education and Kentucky First go up and down completely randomly.

Pair Corralation between TAL Education and Kentucky First

Considering the 90-day investment horizon TAL Education is expected to generate 4.82 times less return on investment than Kentucky First. But when comparing it to its historical volatility, TAL Education Group is 2.05 times less risky than Kentucky First. It trades about 0.05 of its potential returns per unit of risk. Kentucky First Federal is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  329.00  in Kentucky First Federal on September 9, 2025 and sell it today you would earn a total of  116.00  from holding Kentucky First Federal or generate 35.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.63%
Values	Daily Returns

TAL Education Group  vs.  Kentucky First Federal

TAL Education Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TAL Education Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, TAL Education may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Kentucky First Federal

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Kentucky First Federal are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady technical and fundamental indicators, Kentucky First sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TAL Education and Kentucky First

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

The idea behind TAL Education Group and Kentucky First Federal 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.