Correlation Between Four Seasons and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both Four Seasons and Crescent Capital 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 Four Seasons and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Four Seasons Education and Crescent Capital BDC, you can compare the effects of market volatilities on Four Seasons and Crescent Capital 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 Four Seasons with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Seasons and Crescent Capital.
Diversification Opportunities for Four Seasons and Crescent Capital
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Four and Crescent is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Four Seasons Education and Crescent Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Capital BDC and Four Seasons 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 Four Seasons Education are associated (or correlated) with Crescent Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Capital BDC has no effect on the direction of Four Seasons i.e., Four Seasons and Crescent Capital go up and down completely randomly.
Pair Corralation between Four Seasons and Crescent Capital
Given the investment horizon of 90 days Four Seasons Education is expected to generate 3.23 times more return on investment than Crescent Capital. However, Four Seasons is 3.23 times more volatile than Crescent Capital BDC. It trades about 0.08 of its potential returns per unit of risk. Crescent Capital BDC is currently generating about -0.07 per unit of risk. If you would invest 1,100 in Four Seasons Education on September 2, 2025 and sell it today you would earn a total of 235.00 from holding Four Seasons Education or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Four Seasons Education vs. Crescent Capital BDC
Performance |
| Timeline |
| Four Seasons Education |
| Crescent Capital BDC |
Four Seasons and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Four Seasons and Crescent Capital
The main advantage of trading using opposite Four Seasons and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Seasons position performs unexpectedly, Crescent Capital 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 Crescent Capital will offset losses from the drop in Crescent Capital's long position.| Four Seasons vs. PTT Global Chemical | Four Seasons vs. US GoldMining Common | Four Seasons vs. Mitsubishi Chemical Holdings | Four Seasons vs. Evolution Mining Limited |
| Crescent Capital vs. Prologic Management Systems | Crescent Capital vs. Gex Management | Crescent Capital vs. Mineral Mountain Mining | Crescent Capital vs. Avidus Management 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |