Correlation Between New Oriental and OneSpaWorld Holdings
Can any of the company-specific risk be diversified away by investing in both New Oriental and OneSpaWorld Holdings 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 New Oriental and OneSpaWorld Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Oriental Education and OneSpaWorld Holdings, you can compare the effects of market volatilities on New Oriental and OneSpaWorld Holdings 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 New Oriental with a short position of OneSpaWorld Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Oriental and OneSpaWorld Holdings.
Diversification Opportunities for New Oriental and OneSpaWorld Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between New and OneSpaWorld is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding New Oriental Education and OneSpaWorld Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpaWorld Holdings and New Oriental 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 New Oriental Education are associated (or correlated) with OneSpaWorld Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpaWorld Holdings has no effect on the direction of New Oriental i.e., New Oriental and OneSpaWorld Holdings go up and down completely randomly.
Pair Corralation between New Oriental and OneSpaWorld Holdings
Considering the 90-day investment horizon New Oriental Education is expected to generate 1.49 times more return on investment than OneSpaWorld Holdings. However, New Oriental is 1.49 times more volatile than OneSpaWorld Holdings. It trades about 0.13 of its potential returns per unit of risk. OneSpaWorld Holdings is currently generating about -0.05 per unit of risk. If you would invest 4,673 in New Oriental Education on July 20, 2025 and sell it today you would earn a total of 1,010 from holding New Oriental Education or generate 21.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Oriental Education vs. OneSpaWorld Holdings
Performance |
| Timeline |
| New Oriental Education |
| OneSpaWorld Holdings |
New Oriental and OneSpaWorld Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Oriental and OneSpaWorld Holdings
The main advantage of trading using opposite New Oriental and OneSpaWorld Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Oriental position performs unexpectedly, OneSpaWorld Holdings 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 OneSpaWorld Holdings will offset losses from the drop in OneSpaWorld Holdings' long position.| New Oriental vs. Stride Inc | New Oriental vs. Grand Canyon Education | New Oriental vs. Smithfield Foods, Common | New Oriental vs. TAL Education Group |
| OneSpaWorld Holdings vs. Six Flags Entertainment | OneSpaWorld Holdings vs. Wolverine World Wide | OneSpaWorld Holdings vs. Under Armour A | OneSpaWorld Holdings vs. LCI Industries |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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