Correlation Between Wah Fu and MMTEC
Can any of the company-specific risk be diversified away by investing in both Wah Fu and MMTEC 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 Wah Fu and MMTEC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wah Fu Education and MMTEC Inc, you can compare the effects of market volatilities on Wah Fu and MMTEC 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 Wah Fu with a short position of MMTEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wah Fu and MMTEC.
Diversification Opportunities for Wah Fu and MMTEC
Excellent diversification
The 3 months correlation between Wah and MMTEC is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Wah Fu Education and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc and Wah Fu 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 Wah Fu Education are associated (or correlated) with MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of Wah Fu i.e., Wah Fu and MMTEC go up and down completely randomly.
Pair Corralation between Wah Fu and MMTEC
Given the investment horizon of 90 days Wah Fu Education is expected to generate 0.61 times more return on investment than MMTEC. However, Wah Fu Education is 1.65 times less risky than MMTEC. It trades about 0.16 of its potential returns per unit of risk. MMTEC Inc is currently generating about -0.02 per unit of risk. If you would invest 144.00 in Wah Fu Education on July 8, 2025 and sell it today you would earn a total of 60.00 from holding Wah Fu Education or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wah Fu Education vs. MMTEC Inc
Performance |
| Timeline |
| Wah Fu Education |
| MMTEC Inc |
Wah Fu and MMTEC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wah Fu and MMTEC
The main advantage of trading using opposite Wah Fu and MMTEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wah Fu position performs unexpectedly, MMTEC 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 MMTEC will offset losses from the drop in MMTEC's long position.| Wah Fu vs. Grand Canyon Education | Wah Fu vs. Adtalem Global Education | Wah Fu vs. Laureate Education | Wah Fu 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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