Correlation Between Coursera and Agape ATP
Can any of the company-specific risk be diversified away by investing in both Coursera and Agape ATP 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 Coursera and Agape ATP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coursera and Agape ATP, you can compare the effects of market volatilities on Coursera and Agape ATP 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 Coursera with a short position of Agape ATP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coursera and Agape ATP.
Diversification Opportunities for Coursera and Agape ATP
Modest diversification
The 3 months correlation between Coursera and Agape is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Coursera and Agape ATP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agape ATP and Coursera 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 Coursera are associated (or correlated) with Agape ATP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agape ATP has no effect on the direction of Coursera i.e., Coursera and Agape ATP go up and down completely randomly.
Pair Corralation between Coursera and Agape ATP
Given the investment horizon of 90 days Coursera is expected to generate 0.45 times more return on investment than Agape ATP. However, Coursera is 2.21 times less risky than Agape ATP. It trades about 0.06 of its potential returns per unit of risk. Agape ATP is currently generating about 0.03 per unit of risk. If you would invest 777.00 in Coursera on September 12, 2024 and sell it today you would earn a total of 68.00 from holding Coursera or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coursera vs. Agape ATP
Performance |
| Timeline |
| Coursera |
| Agape ATP |
Coursera and Agape ATP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coursera and Agape ATP
The main advantage of trading using opposite Coursera and Agape ATP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coursera position performs unexpectedly, Agape ATP 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 Agape ATP will offset losses from the drop in Agape ATP's long position.| Coursera vs. Chegg Inc | Coursera vs. Skillsoft Corp | Coursera vs. Laureate Education | Coursera vs. Udemy Inc |
| Agape ATP vs. NETGEAR | Agape ATP vs. Universal Music Group | Agape ATP vs. Stratasys | Agape ATP vs. CVW CleanTech |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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