Correlation Between Yoshitsu and Ambow Education
Can any of the company-specific risk be diversified away by investing in both Yoshitsu 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 Yoshitsu and Ambow Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yoshitsu Co Ltd and Ambow Education Holding, you can compare the effects of market volatilities on Yoshitsu 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 Yoshitsu with a short position of Ambow Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yoshitsu and Ambow Education.
Diversification Opportunities for Yoshitsu and Ambow Education
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yoshitsu and Ambow is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Yoshitsu Co Ltd 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 Yoshitsu 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 Yoshitsu Co Ltd 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 Yoshitsu i.e., Yoshitsu and Ambow Education go up and down completely randomly.
Pair Corralation between Yoshitsu and Ambow Education
Given the investment horizon of 90 days Yoshitsu Co Ltd is expected to generate 0.61 times more return on investment than Ambow Education. However, Yoshitsu Co Ltd is 1.65 times less risky than Ambow Education. It trades about 0.08 of its potential returns per unit of risk. Ambow Education Holding is currently generating about 0.02 per unit of risk. If you would invest 334.00 in Yoshitsu Co Ltd on March 31, 2025 and sell it today you would earn a total of 38.00 from holding Yoshitsu Co Ltd or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yoshitsu Co Ltd vs. Ambow Education Holding
Performance |
| Timeline |
| Yoshitsu |
| Ambow Education Holding |
Yoshitsu and Ambow Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yoshitsu and Ambow Education
The main advantage of trading using opposite Yoshitsu and Ambow Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yoshitsu 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.| Yoshitsu vs. Inter Parfums | Yoshitsu vs. European Wax Center | Yoshitsu vs. Yatsen Holding | Yoshitsu vs. Edgewell Personal Care |
| Ambow Education vs. Vasta Platform | Ambow Education vs. Sunlands Technology Group | Ambow Education vs. Cogna Educacao SA | Ambow Education vs. American Public Education |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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