Correlation Between Aspen and Stride
Can any of the company-specific risk be diversified away by investing in both Aspen 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 Aspen and Stride into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Group and Stride Inc, you can compare the effects of market volatilities on Aspen 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 Aspen with a short position of Stride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen and Stride.
Diversification Opportunities for Aspen and Stride
Excellent diversification
The 3 months correlation between Aspen and Stride is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Group and Stride Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stride Inc and Aspen 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 Aspen Group 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 Aspen i.e., Aspen and Stride go up and down completely randomly.
Pair Corralation between Aspen and Stride
If you would invest 6,058 in Stride Inc on August 26, 2024 and sell it today you would earn a total of 4,337 from holding Stride Inc or generate 71.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Aspen Group vs. Stride Inc
Performance |
| Timeline |
| Aspen Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stride Inc |
Aspen and Stride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen and Stride
The main advantage of trading using opposite Aspen and Stride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen 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.| Aspen vs. ATA Creativity Global | Aspen vs. American Public Education | Aspen vs. Skillful Craftsman Education | Aspen vs. China Liberal Education |
| Stride vs. Laureate Education | Stride vs. American Public Education | Stride vs. Lincoln Educational Services | Stride vs. Adtalem Global Education |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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