Correlation Between Hope Education and National Retail

Can any of the company-specific risk be diversified away by investing in both Hope Education and National Retail 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 Hope Education and National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hope Education Group and National Retail Properties, you can compare the effects of market volatilities on Hope Education and National Retail 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 Hope Education with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hope Education and National Retail.

Diversification Opportunities for Hope Education and National Retail

0.53

Correlation Coefficient

Hope Education  National Retail

Very weak diversification

The 3 months correlation between Hope and National is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hope Education Group and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and Hope Education 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 Hope Education Group are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of Hope Education i.e., Hope Education and National Retail go up and down completely randomly.

Pair Corralation between Hope Education and National Retail

Assuming the 90 days horizon Hope Education Group is expected to under-perform the National Retail. In addition to that, Hope Education is 3.66 times more volatile than National Retail Properties. It trades about -0.24 of its total potential returns per unit of risk. National Retail Properties is currently generating about -0.05 per unit of volatility. If you would invest  3,703  in National Retail Properties on April 11, 2025 and sell it today you would lose (43.00) from holding National Retail Properties or give up 1.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hope Education Group  vs.  National Retail Properties

Hope Education Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hope Education Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hope Education reported solid returns over the last few months and may actually be approaching a breakup point.

National Retail Prop

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in National Retail Properties are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, National Retail may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hope Education and National Retail

The main advantage of trading using opposite Hope Education and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hope Education position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.

The idea behind Hope Education Group and National Retail Properties pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.