Correlation Between Strategic Education and FLOW TRADERS
Can any of the company-specific risk be diversified away by investing in both Strategic Education and FLOW TRADERS 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 FLOW TRADERS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Education and FLOW TRADERS LTD, you can compare the effects of market volatilities on Strategic Education and FLOW TRADERS 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 FLOW TRADERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Education and FLOW TRADERS.
Diversification Opportunities for Strategic Education and FLOW TRADERS
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Strategic and FLOW is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Education and FLOW TRADERS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLOW TRADERS LTD 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 FLOW TRADERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLOW TRADERS LTD has no effect on the direction of Strategic Education i.e., Strategic Education and FLOW TRADERS go up and down completely randomly.
Pair Corralation between Strategic Education and FLOW TRADERS
Assuming the 90 days horizon Strategic Education is expected to generate 1.17 times more return on investment than FLOW TRADERS. However, Strategic Education is 1.17 times more volatile than FLOW TRADERS LTD. It trades about 0.05 of its potential returns per unit of risk. FLOW TRADERS LTD is currently generating about 0.01 per unit of risk. If you would invest 6,905 in Strategic Education on September 1, 2024 and sell it today you would earn a total of 2,495 from holding Strategic Education or generate 36.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Education vs. FLOW TRADERS LTD
Performance |
| Timeline |
| Strategic Education |
| FLOW TRADERS LTD |
Strategic Education and FLOW TRADERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Education and FLOW TRADERS
The main advantage of trading using opposite Strategic Education and FLOW TRADERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Education position performs unexpectedly, FLOW TRADERS 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 FLOW TRADERS will offset losses from the drop in FLOW TRADERS's long position.| Strategic Education vs. MIRAMAR HOTEL INV | Strategic Education vs. Sunstone Hotel Investors | Strategic Education vs. SEKISUI CHEMICAL | Strategic Education vs. Sumitomo Chemical |
| FLOW TRADERS vs. Morgan Stanley | FLOW TRADERS vs. The Goldman Sachs | FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. NMI Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |