Correlation Between Laureate Education and Anglo American
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By analyzing existing cross correlation between Laureate Education and Anglo American plc, you can compare the effects of market volatilities on Laureate Education and Anglo American 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 Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laureate Education and Anglo American.
Diversification Opportunities for Laureate Education and Anglo American
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Laureate and Anglo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Laureate Education and Anglo American plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American plc 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 Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American plc has no effect on the direction of Laureate Education i.e., Laureate Education and Anglo American go up and down completely randomly.
Pair Corralation between Laureate Education and Anglo American
Assuming the 90 days trading horizon Laureate Education is expected to generate 1.03 times more return on investment than Anglo American. However, Laureate Education is 1.03 times more volatile than Anglo American plc. It trades about 0.1 of its potential returns per unit of risk. Anglo American plc is currently generating about 0.05 per unit of risk. If you would invest 1,360 in Laureate Education on September 3, 2024 and sell it today you would earn a total of 420.00 from holding Laureate Education or generate 30.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laureate Education vs. Anglo American plc
Performance |
| Timeline |
| Laureate Education |
| Anglo American plc |
Laureate Education and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laureate Education and Anglo American
The main advantage of trading using opposite Laureate Education and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laureate Education position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American's long position.| Laureate Education vs. SENECA FOODS A | Laureate Education vs. PT Global Mediacom | Laureate Education vs. PREMIER FOODS | Laureate Education vs. United Natural Foods |
| Anglo American vs. Summit Hotel Properties | Anglo American vs. Apollo Investment Corp | Anglo American vs. Choice Hotels International | Anglo American vs. New Residential Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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