Correlation Between Fortinet and STRAYER EDUCATION
Can any of the company-specific risk be diversified away by investing in both Fortinet 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 Fortinet and STRAYER EDUCATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and STRAYER EDUCATION, you can compare the effects of market volatilities on Fortinet 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 Fortinet with a short position of STRAYER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and STRAYER EDUCATION.
Diversification Opportunities for Fortinet and STRAYER EDUCATION
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fortinet and STRAYER is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and STRAYER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAYER EDUCATION and Fortinet 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 Fortinet 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 Fortinet i.e., Fortinet and STRAYER EDUCATION go up and down completely randomly.
Pair Corralation between Fortinet and STRAYER EDUCATION
Assuming the 90 days horizon Fortinet is expected to under-perform the STRAYER EDUCATION. But the stock apears to be less risky and, when comparing its historical volatility, Fortinet is 1.12 times less risky than STRAYER EDUCATION. The stock trades about -0.02 of its potential returns per unit of risk. The STRAYER EDUCATION is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 8,850 in STRAYER EDUCATION on October 22, 2024 and sell it today you would earn a total of 550.00 from holding STRAYER EDUCATION or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.12% |
| Values | Daily Returns |
Fortinet vs. STRAYER EDUCATION
Performance |
| Timeline |
| Fortinet |
| STRAYER EDUCATION |
Fortinet and STRAYER EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and STRAYER EDUCATION
The main advantage of trading using opposite Fortinet and STRAYER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet 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.| Fortinet vs. STRAYER EDUCATION | Fortinet vs. DEVRY EDUCATION GRP | Fortinet vs. TYSON FOODS A | Fortinet vs. ULTRA CLEAN HLDGS |
| STRAYER EDUCATION vs. Retail Estates NV | STRAYER EDUCATION vs. Delta Electronics Public | STRAYER EDUCATION vs. LPKF Laser Electronics | STRAYER EDUCATION vs. SPARTAN STORES |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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