Correlation Between Stride and ANSYS
Can any of the company-specific risk be diversified away by investing in both Stride and ANSYS 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 Stride and ANSYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stride Inc and ANSYS Inc, you can compare the effects of market volatilities on Stride and ANSYS 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 Stride with a short position of ANSYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stride and ANSYS.
Diversification Opportunities for Stride and ANSYS
Poor diversification
The 3 months correlation between Stride and ANSYS is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Stride Inc and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc and Stride 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 Stride Inc are associated (or correlated) with ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Stride i.e., Stride and ANSYS go up and down completely randomly.
Pair Corralation between Stride and ANSYS
Considering the 90-day investment horizon Stride Inc is expected to generate 1.3 times more return on investment than ANSYS. However, Stride is 1.3 times more volatile than ANSYS Inc. It trades about 0.67 of its potential returns per unit of risk. ANSYS Inc is currently generating about 0.14 per unit of risk. If you would invest 10,714 in Stride Inc on November 4, 2024 and sell it today you would earn a total of 2,776 from holding Stride Inc or generate 25.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stride Inc vs. ANSYS Inc
Performance |
| Timeline |
| Stride Inc |
| ANSYS Inc |
Stride and ANSYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stride and ANSYS
The main advantage of trading using opposite Stride and ANSYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stride position performs unexpectedly, ANSYS 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 ANSYS will offset losses from the drop in ANSYS's long position.| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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