Correlation Between Vasta Platform and Stride
Can any of the company-specific risk be diversified away by investing in both Vasta Platform and Stride 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 Vasta Platform and Stride into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vasta Platform and Stride Inc, you can compare the effects of market volatilities on Vasta Platform and Stride 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 Vasta Platform with a short position of Stride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vasta Platform and Stride.
Diversification Opportunities for Vasta Platform and Stride
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vasta and Stride is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vasta Platform and Stride Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stride Inc and Vasta Platform 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 Vasta Platform are associated (or correlated) with Stride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stride Inc has no effect on the direction of Vasta Platform i.e., Vasta Platform and Stride go up and down completely randomly.
Pair Corralation between Vasta Platform and Stride
Given the investment horizon of 90 days Vasta Platform is expected to under-perform the Stride. But the stock apears to be less risky and, when comparing its historical volatility, Vasta Platform is 1.05 times less risky than Stride. The stock trades about -0.02 of its potential returns per unit of risk. The Stride Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,322 in Stride Inc on August 24, 2024 and sell it today you would earn a total of 7,073 from holding Stride Inc or generate 212.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vasta Platform vs. Stride Inc
Performance |
| Timeline |
| Vasta Platform |
| Stride Inc |
Vasta Platform and Stride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vasta Platform and Stride
The main advantage of trading using opposite Vasta Platform and Stride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vasta Platform position performs unexpectedly, Stride 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 Stride will offset losses from the drop in Stride's long position.| Vasta Platform vs. TAL Education Group | Vasta Platform vs. Strategic Education | Vasta Platform vs. Afya | Vasta Platform vs. Adtalem Global Education |
| Stride vs. TAL Education Group | Stride vs. Strategic Education | Stride vs. Vasta Platform | Stride vs. Afya |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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