Correlation Between Graham Holdings and Zovio
Can any of the company-specific risk be diversified away by investing in both Graham Holdings and Zovio 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 Graham Holdings and Zovio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Zovio Inc, you can compare the effects of market volatilities on Graham Holdings and Zovio 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 Graham Holdings with a short position of Zovio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Zovio.
Diversification Opportunities for Graham Holdings and Zovio
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graham and Zovio is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co and Zovio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zovio Inc and Graham Holdings 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 Graham Holdings Co are associated (or correlated) with Zovio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zovio Inc has no effect on the direction of Graham Holdings i.e., Graham Holdings and Zovio go up and down completely randomly.
Pair Corralation between Graham Holdings and Zovio
If you would invest 78,971 in Graham Holdings Co on August 30, 2024 and sell it today you would earn a total of 14,687 from holding Graham Holdings Co or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Graham Holdings Co vs. Zovio Inc
Performance |
| Timeline |
| Graham Holdings |
| Zovio Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Graham Holdings and Zovio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Zovio
The main advantage of trading using opposite Graham Holdings and Zovio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings position performs unexpectedly, Zovio 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 Zovio will offset losses from the drop in Zovio's long position.| Graham Holdings vs. Laureate Education | Graham Holdings vs. Strategic Education | Graham Holdings vs. Grand Canyon Education | Graham Holdings vs. American Public Education |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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