Correlation Between Coursera and Ihuman
Can any of the company-specific risk be diversified away by investing in both Coursera and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coursera and Ihuman Inc, you can compare the effects of market volatilities on Coursera and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coursera and Ihuman.
Diversification Opportunities for Coursera and Ihuman
Good diversification
The 3 months correlation between Coursera and Ihuman is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Coursera and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Coursera i.e., Coursera and Ihuman go up and down completely randomly.
Pair Corralation between Coursera and Ihuman
Given the investment horizon of 90 days Coursera is expected to generate 1.44 times more return on investment than Ihuman. However, Coursera is 1.44 times more volatile than Ihuman Inc. It trades about 0.15 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.38 per unit of risk. If you would invest 724.00 in Coursera on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Coursera or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coursera vs. Ihuman Inc
Performance |
| Timeline |
| Coursera |
| Ihuman Inc |
Coursera and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coursera and Ihuman
The main advantage of trading using opposite Coursera and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coursera position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Coursera vs. American Public Education | Coursera vs. Lincoln Educational Services | Coursera vs. Adtalem Global Education |
| Ihuman vs. Wah Fu Education | Ihuman vs. Golden Sun Education | Ihuman vs. Elite Education Group | Ihuman vs. QuantaSing Group Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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