Correlation Between Graham Holdings and Ambow Education
Can any of the company-specific risk be diversified away by investing in both Graham Holdings and Ambow Education 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 Graham Holdings and Ambow Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Ambow Education Holding, you can compare the effects of market volatilities on Graham Holdings and Ambow Education 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 Graham Holdings with a short position of Ambow Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Ambow Education.
Diversification Opportunities for Graham Holdings and Ambow Education
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Graham and Ambow is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co and Ambow Education Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambow Education Holding and Graham Holdings 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 Graham Holdings Co are associated (or correlated) with Ambow Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambow Education Holding has no effect on the direction of Graham Holdings i.e., Graham Holdings and Ambow Education go up and down completely randomly.
Pair Corralation between Graham Holdings and Ambow Education
Considering the 90-day investment horizon Graham Holdings is expected to generate 20.02 times less return on investment than Ambow Education. But when comparing it to its historical volatility, Graham Holdings Co is 5.04 times less risky than Ambow Education. It trades about 0.02 of its potential returns per unit of risk. Ambow Education Holding is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 303.00 in Ambow Education Holding on August 15, 2025 and sell it today you would earn a total of 106.00 from holding Ambow Education Holding or generate 34.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham Holdings Co vs. Ambow Education Holding
Performance |
| Timeline |
| Graham Holdings |
| Ambow Education Holding |
Graham Holdings and Ambow Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Ambow Education
The main advantage of trading using opposite Graham Holdings and Ambow Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings position performs unexpectedly, Ambow Education 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 Ambow Education will offset losses from the drop in Ambow Education's long position.| Graham Holdings vs. Laureate Education | Graham Holdings vs. Cal Maine Foods | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Bellring Brands LLC |
| Ambow Education vs. Lixiang Education Holding | Ambow Education vs. LQR House | Ambow Education vs. SW Seed Company | Ambow Education vs. Rapid Line |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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