Correlation Between American Public and Vitru
Can any of the company-specific risk be diversified away by investing in both American Public and Vitru 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 American Public and Vitru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Public Education and Vitru, you can compare the effects of market volatilities on American Public and Vitru 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 American Public with a short position of Vitru. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Public and Vitru.
Diversification Opportunities for American Public and Vitru
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between American and Vitru is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding American Public Education and Vitru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitru and American Public 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 American Public Education are associated (or correlated) with Vitru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitru has no effect on the direction of American Public i.e., American Public and Vitru go up and down completely randomly.
Pair Corralation between American Public and Vitru
If you would invest 1,427 in American Public Education on August 24, 2024 and sell it today you would earn a total of 534.00 from holding American Public Education or generate 37.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
American Public Education vs. Vitru
Performance |
| Timeline |
| American Public Education |
| Vitru |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Public and Vitru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Public and Vitru
The main advantage of trading using opposite American Public and Vitru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Public position performs unexpectedly, Vitru 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 Vitru will offset losses from the drop in Vitru's long position.| American Public vs. Laureate Education | American Public vs. Afya | American Public vs. Strategic Education | American Public vs. Stride Inc |
| Vitru vs. Universal Technical Institute | Vitru vs. ATA Creativity Global | Vitru vs. Cogna Educacao SA | Vitru vs. Sunlands Technology Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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