Correlation Between Laureate Education and MIE HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Laureate Education and MIE HOLDINGS 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 Laureate Education and MIE HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laureate Education and MIE HOLDINGS, you can compare the effects of market volatilities on Laureate Education and MIE HOLDINGS 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 Laureate Education with a short position of MIE HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laureate Education and MIE HOLDINGS.
Diversification Opportunities for Laureate Education and MIE HOLDINGS
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Laureate and MIE is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Laureate Education and MIE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIE HOLDINGS and Laureate Education 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 Laureate Education are associated (or correlated) with MIE HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIE HOLDINGS has no effect on the direction of Laureate Education i.e., Laureate Education and MIE HOLDINGS go up and down completely randomly.
Pair Corralation between Laureate Education and MIE HOLDINGS
If you would invest 1,570 in Laureate Education on September 2, 2024 and sell it today you would earn a total of 210.00 from holding Laureate Education or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laureate Education vs. MIE HOLDINGS
Performance |
| Timeline |
| Laureate Education |
| MIE HOLDINGS |
Laureate Education and MIE HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laureate Education and MIE HOLDINGS
The main advantage of trading using opposite Laureate Education and MIE HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laureate Education position performs unexpectedly, MIE HOLDINGS 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 MIE HOLDINGS will offset losses from the drop in MIE HOLDINGS's long position.| Laureate Education vs. Superior Plus Corp | Laureate Education vs. NMI Holdings | Laureate Education vs. Origin Agritech | Laureate Education vs. SIVERS SEMICONDUCTORS AB |
| MIE HOLDINGS vs. G III Apparel Group | MIE HOLDINGS vs. MOVIE GAMES SA | MIE HOLDINGS vs. UNIVERSAL MUSIC GROUP | MIE HOLDINGS vs. AVITA Medical |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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