Correlation Between Strategic Education and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both Strategic Education and Sibanye Stillwater 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 Strategic Education and Sibanye Stillwater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Education and Sibanye Stillwater Limited, you can compare the effects of market volatilities on Strategic Education and Sibanye Stillwater 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 Strategic Education with a short position of Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Education and Sibanye Stillwater.
Diversification Opportunities for Strategic Education and Sibanye Stillwater
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Strategic and Sibanye is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Education and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater and Strategic 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 Strategic Education are associated (or correlated) with Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of Strategic Education i.e., Strategic Education and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between Strategic Education and Sibanye Stillwater
Assuming the 90 days horizon Strategic Education is expected to generate 0.54 times more return on investment than Sibanye Stillwater. However, Strategic Education is 1.84 times less risky than Sibanye Stillwater. It trades about 0.07 of its potential returns per unit of risk. Sibanye Stillwater Limited is currently generating about -0.05 per unit of risk. If you would invest 9,091 in Strategic Education on September 13, 2024 and sell it today you would earn a total of 159.00 from holding Strategic Education or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Education vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| Strategic Education |
| Sibanye Stillwater |
Strategic Education and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Education and Sibanye Stillwater
The main advantage of trading using opposite Strategic Education and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Education position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.| Strategic Education vs. Tradeweb Markets | Strategic Education vs. SALESFORCE INC CDR | Strategic Education vs. CDN IMPERIAL BANK | Strategic Education vs. OAKTRSPECLENDNEW |
| Sibanye Stillwater vs. EMBARK EDUCATION LTD | Sibanye Stillwater vs. SEI INVESTMENTS | Sibanye Stillwater vs. Chuangs China Investments | Sibanye Stillwater vs. Strategic 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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