Correlation Between New Oriental and Primo Brands
Can any of the company-specific risk be diversified away by investing in both New Oriental and Primo Brands 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 Primo Brands 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 Primo Brands, you can compare the effects of market volatilities on New Oriental and Primo Brands 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 Primo Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Oriental and Primo Brands.
Diversification Opportunities for New Oriental and Primo Brands
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Primo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding New Oriental Education and Primo Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primo Brands 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 Primo Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primo Brands has no effect on the direction of New Oriental i.e., New Oriental and Primo Brands go up and down completely randomly.
Pair Corralation between New Oriental and Primo Brands
Considering the 90-day investment horizon New Oriental Education is expected to generate 0.63 times more return on investment than Primo Brands. However, New Oriental Education is 1.58 times less risky than Primo Brands. It trades about 0.06 of its potential returns per unit of risk. Primo Brands is currently generating about -0.16 per unit of risk. If you would invest 4,663 in New Oriental Education on August 28, 2025 and sell it today you would earn a total of 417.00 from holding New Oriental Education or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Oriental Education vs. Primo Brands
Performance |
| Timeline |
| New Oriental Education |
| Primo Brands |
New Oriental and Primo Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Oriental and Primo Brands
The main advantage of trading using opposite New Oriental and Primo Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Oriental position performs unexpectedly, Primo Brands 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 Primo Brands will offset losses from the drop in Primo Brands' long position.| New Oriental vs. Astro Communications | New Oriental vs. Comtech Telecommunications Corp | New Oriental vs. B Communications | New Oriental vs. On4 Communications |
| Primo Brands vs. Tyson Foods | Primo Brands vs. Slate Grocery REIT | Primo Brands vs. Mitsui Chemicals ADR | Primo Brands vs. Bridgford Foods |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |