Correlation Between AMP and STRAYER EDUCATION
Can any of the company-specific risk be diversified away by investing in both AMP and STRAYER 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 AMP and STRAYER EDUCATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMP and STRAYER EDUCATION, you can compare the effects of market volatilities on AMP and STRAYER 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 AMP with a short position of STRAYER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMP and STRAYER EDUCATION.
Diversification Opportunities for AMP and STRAYER EDUCATION
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMP and STRAYER is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AMP and STRAYER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAYER EDUCATION and AMP 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 AMP are associated (or correlated) with STRAYER EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAYER EDUCATION has no effect on the direction of AMP i.e., AMP and STRAYER EDUCATION go up and down completely randomly.
Pair Corralation between AMP and STRAYER EDUCATION
Assuming the 90 days trading horizon AMP is expected to generate 1.15 times more return on investment than STRAYER EDUCATION. However, AMP is 1.15 times more volatile than STRAYER EDUCATION. It trades about 0.07 of its potential returns per unit of risk. STRAYER EDUCATION is currently generating about 0.07 per unit of risk. If you would invest 58.00 in AMP on September 12, 2024 and sell it today you would earn a total of 37.00 from holding AMP or generate 63.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
AMP vs. STRAYER EDUCATION
Performance |
| Timeline |
| AMP |
| STRAYER EDUCATION |
AMP and STRAYER EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMP and STRAYER EDUCATION
The main advantage of trading using opposite AMP and STRAYER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMP position performs unexpectedly, STRAYER 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 STRAYER EDUCATION will offset losses from the drop in STRAYER EDUCATION's long position.| AMP vs. STRAYER EDUCATION | AMP vs. STMicroelectronics NV | AMP vs. American Public Education | AMP vs. KIMBALL ELECTRONICS |
| STRAYER EDUCATION vs. Apple Inc | STRAYER EDUCATION vs. Apple Inc | STRAYER EDUCATION vs. Apple Inc | STRAYER EDUCATION vs. Apple 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |