Correlation Between Albertsons Companies and New Oriental
Can any of the company-specific risk be diversified away by investing in both Albertsons Companies and New Oriental 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 Albertsons Companies and New Oriental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albertsons Companies and New Oriental Education, you can compare the effects of market volatilities on Albertsons Companies and New Oriental 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 Albertsons Companies with a short position of New Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and New Oriental.
Diversification Opportunities for Albertsons Companies and New Oriental
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Albertsons and New is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and New Oriental Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Oriental Education and Albertsons Companies 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 Albertsons Companies are associated (or correlated) with New Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Oriental Education has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and New Oriental go up and down completely randomly.
Pair Corralation between Albertsons Companies and New Oriental
Considering the 90-day investment horizon Albertsons Companies is expected to under-perform the New Oriental. But the stock apears to be less risky and, when comparing its historical volatility, Albertsons Companies is 1.2 times less risky than New Oriental. The stock trades about -0.02 of its potential returns per unit of risk. The New Oriental Education is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,831 in New Oriental Education on August 16, 2025 and sell it today you would earn a total of 564.00 from holding New Oriental Education or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albertsons Companies vs. New Oriental Education
Performance |
| Timeline |
| Albertsons Companies |
| New Oriental Education |
Albertsons Companies and New Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albertsons Companies and New Oriental
The main advantage of trading using opposite Albertsons Companies and New Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, New Oriental 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 New Oriental will offset losses from the drop in New Oriental's long position.| Albertsons Companies vs. Empire Company Limited | Albertsons Companies vs. CP ALL Public | Albertsons Companies vs. J Sainsbury plc | Albertsons Companies vs. Sprouts Farmers Market |
| New Oriental vs. Stride Inc | New Oriental vs. Grand Canyon Education | New Oriental vs. Smithfield Foods, Common | New Oriental vs. TAL Education Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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