Correlation Between Afya and NORTHROP
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By analyzing existing cross correlation between Afya and NORTHROP GRUMMAN P, you can compare the effects of market volatilities on Afya and NORTHROP 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 Afya with a short position of NORTHROP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and NORTHROP.
Diversification Opportunities for Afya and NORTHROP
Very good diversification
The 3 months correlation between Afya and NORTHROP is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Afya and NORTHROP GRUMMAN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTHROP GRUMMAN P and Afya 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 Afya are associated (or correlated) with NORTHROP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTHROP GRUMMAN P has no effect on the direction of Afya i.e., Afya and NORTHROP go up and down completely randomly.
Pair Corralation between Afya and NORTHROP
Given the investment horizon of 90 days Afya is expected to under-perform the NORTHROP. In addition to that, Afya is 2.45 times more volatile than NORTHROP GRUMMAN P. It trades about -0.04 of its total potential returns per unit of risk. NORTHROP GRUMMAN P is currently generating about 0.01 per unit of volatility. If you would invest 9,224 in NORTHROP GRUMMAN P on September 3, 2024 and sell it today you would earn a total of 144.00 from holding NORTHROP GRUMMAN P or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.88% |
| Values | Daily Returns |
Afya vs. NORTHROP GRUMMAN P
Performance |
| Timeline |
| Afya |
| NORTHROP GRUMMAN P |
Afya and NORTHROP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and NORTHROP
The main advantage of trading using opposite Afya and NORTHROP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, NORTHROP 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 NORTHROP will offset losses from the drop in NORTHROP's long position.| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
| NORTHROP vs. The Travelers Companies | NORTHROP vs. GE Aerospace | NORTHROP vs. Walmart | NORTHROP vs. Pfizer Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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