Correlation Between Golden Sun and Stride
Can any of the company-specific risk be diversified away by investing in both Golden Sun and Stride 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 Golden Sun and Stride into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Sun Education and Stride Inc, you can compare the effects of market volatilities on Golden Sun and Stride 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 Golden Sun with a short position of Stride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Sun and Stride.
Diversification Opportunities for Golden Sun and Stride
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Stride is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Golden Sun Education and Stride Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stride Inc and Golden Sun 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 Golden Sun Education are associated (or correlated) with Stride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stride Inc has no effect on the direction of Golden Sun i.e., Golden Sun and Stride go up and down completely randomly.
Pair Corralation between Golden Sun and Stride
Given the investment horizon of 90 days Golden Sun Education is expected to under-perform the Stride. In addition to that, Golden Sun is 1.36 times more volatile than Stride Inc. It trades about -0.19 of its total potential returns per unit of risk. Stride Inc is currently generating about 0.11 per unit of volatility. If you would invest 8,531 in Stride Inc on August 30, 2024 and sell it today you would earn a total of 2,173 from holding Stride Inc or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Golden Sun Education vs. Stride Inc
Performance |
| Timeline |
| Golden Sun Education |
| Stride Inc |
Golden Sun and Stride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Sun and Stride
The main advantage of trading using opposite Golden Sun and Stride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Sun position performs unexpectedly, Stride 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 Stride will offset losses from the drop in Stride's long position.| Golden Sun vs. Wah Fu Education | Golden Sun vs. QuantaSing Group Limited | Golden Sun vs. Genius Group | Golden Sun vs. China Liberal Education |
| Stride vs. Laureate Education | Stride vs. American Public Education | Stride vs. Lincoln Educational Services | Stride vs. Adtalem Global 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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