Correlation Between MBANK and Strategic Education
Can any of the company-specific risk be diversified away by investing in both MBANK and Strategic 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 MBANK and Strategic Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MBANK and Strategic Education, you can compare the effects of market volatilities on MBANK and Strategic 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 MBANK with a short position of Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBANK and Strategic Education.
Diversification Opportunities for MBANK and Strategic Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MBANK and Strategic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MBANK and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education and MBANK 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 MBANK are associated (or correlated) with Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of MBANK i.e., MBANK and Strategic Education go up and down completely randomly.
Pair Corralation between MBANK and Strategic Education
If you would invest 7,899 in Strategic Education on October 26, 2024 and sell it today you would earn a total of 1,351 from holding Strategic Education or generate 17.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MBANK vs. Strategic Education
Performance |
| Timeline |
| MBANK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Strategic Education |
MBANK and Strategic Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBANK and Strategic Education
The main advantage of trading using opposite MBANK and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBANK position performs unexpectedly, Strategic 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 Strategic Education will offset losses from the drop in Strategic Education's long position.| MBANK vs. ARISTOCRAT LEISURE | MBANK vs. Harmony Gold Mining | MBANK vs. GALENA MINING LTD | MBANK vs. TRAVEL LEISURE DL 01 |
| Strategic Education vs. IDP EDUCATION LTD | Strategic Education vs. TAL Education Group | Strategic Education vs. Grand Canyon Education | Strategic Education vs. Graham Holdings Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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