Correlation Between CyberAgent and Strategic Education
Can any of the company-specific risk be diversified away by investing in both CyberAgent 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 CyberAgent and Strategic Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberAgent and Strategic Education, you can compare the effects of market volatilities on CyberAgent 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 CyberAgent with a short position of Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberAgent and Strategic Education.
Diversification Opportunities for CyberAgent and Strategic Education
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between CyberAgent and Strategic is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding CyberAgent and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education and CyberAgent 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 CyberAgent 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 CyberAgent i.e., CyberAgent and Strategic Education go up and down completely randomly.
Pair Corralation between CyberAgent and Strategic Education
Assuming the 90 days horizon CyberAgent is expected to under-perform the Strategic Education. In addition to that, CyberAgent is 1.14 times more volatile than Strategic Education. It trades about -0.01 of its total potential returns per unit of risk. Strategic Education is currently generating about 0.04 per unit of volatility. If you would invest 7,082 in Strategic Education on September 5, 2024 and sell it today you would earn a total of 2,168 from holding Strategic Education or generate 30.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CyberAgent vs. Strategic Education
Performance |
| Timeline |
| CyberAgent |
| Strategic Education |
CyberAgent and Strategic Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberAgent and Strategic Education
The main advantage of trading using opposite CyberAgent and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberAgent 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.| CyberAgent vs. Strategic Education | CyberAgent vs. SLR Investment Corp | CyberAgent vs. DeVry Education Group | CyberAgent vs. Genco Shipping Trading |
| Strategic Education vs. Apollo Medical Holdings | Strategic Education vs. China Resources Beer | Strategic Education vs. Fevertree Drinks PLC | Strategic Education vs. SAFETY MEDICAL PROD |
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 CEOs Directory module to screen CEOs from public companies around the world.
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