Correlation Between Ambow Education and Yoshitsu
Can any of the company-specific risk be diversified away by investing in both Ambow Education and Yoshitsu 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 Ambow Education and Yoshitsu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambow Education Holding and Yoshitsu Co Ltd, you can compare the effects of market volatilities on Ambow Education and Yoshitsu 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 Ambow Education with a short position of Yoshitsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambow Education and Yoshitsu.
Diversification Opportunities for Ambow Education and Yoshitsu
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ambow and Yoshitsu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ambow Education Holding and Yoshitsu Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoshitsu and Ambow 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 Ambow Education Holding are associated (or correlated) with Yoshitsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoshitsu has no effect on the direction of Ambow Education i.e., Ambow Education and Yoshitsu go up and down completely randomly.
Pair Corralation between Ambow Education and Yoshitsu
Given the investment horizon of 90 days Ambow Education Holding is expected to under-perform the Yoshitsu. In addition to that, Ambow Education is 1.66 times more volatile than Yoshitsu Co Ltd. It trades about -0.03 of its total potential returns per unit of risk. Yoshitsu Co Ltd is currently generating about 0.07 per unit of volatility. If you would invest 338.00 in Yoshitsu Co Ltd on March 28, 2025 and sell it today you would earn a total of 33.00 from holding Yoshitsu Co Ltd or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambow Education Holding vs. Yoshitsu Co Ltd
Performance |
| Timeline |
| Ambow Education Holding |
| Yoshitsu |
Ambow Education and Yoshitsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambow Education and Yoshitsu
The main advantage of trading using opposite Ambow Education and Yoshitsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambow Education position performs unexpectedly, Yoshitsu 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 Yoshitsu will offset losses from the drop in Yoshitsu's long position.| Ambow Education vs. Vasta Platform | Ambow Education vs. Sunlands Technology Group | Ambow Education vs. Cogna Educacao SA | Ambow Education vs. American Public Education |
| Yoshitsu vs. Inter Parfums | Yoshitsu vs. European Wax Center | Yoshitsu vs. Yatsen Holding | Yoshitsu vs. Edgewell Personal Care |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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