Correlation Between STRAYER EDUCATION and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both STRAYER EDUCATION and REGAL ASIAN 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 STRAYER EDUCATION and REGAL ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRAYER EDUCATION and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on STRAYER EDUCATION and REGAL ASIAN 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 STRAYER EDUCATION with a short position of REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRAYER EDUCATION and REGAL ASIAN.
Diversification Opportunities for STRAYER EDUCATION and REGAL ASIAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STRAYER and REGAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STRAYER EDUCATION and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS and STRAYER 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 STRAYER EDUCATION are associated (or correlated) with REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of STRAYER EDUCATION i.e., STRAYER EDUCATION and REGAL ASIAN go up and down completely randomly.
Pair Corralation between STRAYER EDUCATION and REGAL ASIAN
Assuming the 90 days trading horizon STRAYER EDUCATION is expected to generate 1.46 times more return on investment than REGAL ASIAN. However, STRAYER EDUCATION is 1.46 times more volatile than REGAL ASIAN INVESTMENTS. It trades about 0.05 of its potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about 0.07 per unit of risk. If you would invest 7,353 in STRAYER EDUCATION on August 25, 2024 and sell it today you would earn a total of 1,797 from holding STRAYER EDUCATION or generate 24.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
STRAYER EDUCATION vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| STRAYER EDUCATION |
| REGAL ASIAN INVESTMENTS |
STRAYER EDUCATION and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRAYER EDUCATION and REGAL ASIAN
The main advantage of trading using opposite STRAYER EDUCATION and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRAYER EDUCATION position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| STRAYER EDUCATION vs. REGAL ASIAN INVESTMENTS | STRAYER EDUCATION vs. AOYAMA TRADING | STRAYER EDUCATION vs. Laureate Education | STRAYER EDUCATION vs. Gladstone Investment |
| REGAL ASIAN vs. FANDIFI TECHNOLOGY P | REGAL ASIAN vs. Japan Medical Dynamic | REGAL ASIAN vs. Apyx Medical Corp | REGAL ASIAN vs. ONWARD MEDICAL BV |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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