Correlation Between CAIRN HOMES and STRAYER EDUCATION
Can any of the company-specific risk be diversified away by investing in both CAIRN HOMES 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 CAIRN HOMES and STRAYER EDUCATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAIRN HOMES EO and STRAYER EDUCATION, you can compare the effects of market volatilities on CAIRN HOMES 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 CAIRN HOMES with a short position of STRAYER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAIRN HOMES and STRAYER EDUCATION.
Diversification Opportunities for CAIRN HOMES and STRAYER EDUCATION
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CAIRN and STRAYER is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CAIRN HOMES EO and STRAYER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAYER EDUCATION and CAIRN HOMES 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 CAIRN HOMES EO 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 CAIRN HOMES i.e., CAIRN HOMES and STRAYER EDUCATION go up and down completely randomly.
Pair Corralation between CAIRN HOMES and STRAYER EDUCATION
Assuming the 90 days horizon CAIRN HOMES EO is expected to generate 0.98 times more return on investment than STRAYER EDUCATION. However, CAIRN HOMES EO is 1.02 times less risky than STRAYER EDUCATION. It trades about 0.09 of its potential returns per unit of risk. STRAYER EDUCATION is currently generating about 0.02 per unit of risk. If you would invest 104.00 in CAIRN HOMES EO on December 13, 2024 and sell it today you would earn a total of 95.00 from holding CAIRN HOMES EO or generate 91.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAIRN HOMES EO vs. STRAYER EDUCATION
Performance |
| Timeline |
| CAIRN HOMES EO |
| STRAYER EDUCATION |
CAIRN HOMES and STRAYER EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAIRN HOMES and STRAYER EDUCATION
The main advantage of trading using opposite CAIRN HOMES and STRAYER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAIRN HOMES 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.| CAIRN HOMES vs. American Public Education | ||
| CAIRN HOMES vs. AGNC INVESTMENT | ||
| CAIRN HOMES vs. TAL Education Group | ||
| CAIRN HOMES vs. Gladstone Investment |
| STRAYER EDUCATION vs. Haier Smart Home | ||
| STRAYER EDUCATION vs. Sumitomo Chemical | ||
| STRAYER EDUCATION vs. CAIRN HOMES EO | ||
| STRAYER EDUCATION vs. KINGBOARD CHEMICAL |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |