Correlation Between Arco Platform and Stride
Can any of the company-specific risk be diversified away by investing in both Arco Platform and Stride 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 Arco Platform and Stride into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arco Platform and Stride Inc, you can compare the effects of market volatilities on Arco Platform and Stride 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 Arco Platform with a short position of Stride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arco Platform and Stride.
Diversification Opportunities for Arco Platform and Stride
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Arco and Stride is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Arco Platform and Stride Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stride Inc and Arco Platform 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 Arco Platform are associated (or correlated) with Stride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stride Inc has no effect on the direction of Arco Platform i.e., Arco Platform and Stride go up and down completely randomly.
Pair Corralation between Arco Platform and Stride
If you would invest 8,971 in Stride Inc on August 24, 2024 and sell it today you would earn a total of 1,424 from holding Stride Inc or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Arco Platform vs. Stride Inc
Performance |
| Timeline |
| Arco Platform |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stride Inc |
Arco Platform and Stride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arco Platform and Stride
The main advantage of trading using opposite Arco Platform and Stride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arco Platform position performs unexpectedly, Stride 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 Stride will offset losses from the drop in Stride's long position.| Arco Platform vs. Adtalem Global Education | Arco Platform vs. American Public Education | Arco Platform vs. Laureate Education | Arco Platform vs. Grand Canyon Education |
| Stride vs. TAL Education Group | Stride vs. Strategic Education | Stride vs. Vasta Platform | Stride vs. Afya |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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