Correlation Between Align Technology and STRAYER EDUCATION

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Align Technology and STRAYER EDUCATION 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 Align Technology and STRAYER EDUCATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Align Technology and STRAYER EDUCATION, you can compare the effects of market volatilities on Align Technology and STRAYER EDUCATION 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 Align Technology with a short position of STRAYER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Align Technology and STRAYER EDUCATION.

Diversification Opportunities for Align Technology and STRAYER EDUCATION

AlignSTRAYERDiversified AwayAlignSTRAYERDiversified Away100%
0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Align and STRAYER is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Align Technology and STRAYER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAYER EDUCATION and Align Technology 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 Align Technology are associated (or correlated) with STRAYER EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAYER EDUCATION has no effect on the direction of Align Technology i.e., Align Technology and STRAYER EDUCATION go up and down completely randomly.

Pair Corralation between Align Technology and STRAYER EDUCATION

Assuming the 90 days horizon Align Technology is expected to under-perform the STRAYER EDUCATION. In addition to that, Align Technology is 1.51 times more volatile than STRAYER EDUCATION. It trades about -0.04 of its total potential returns per unit of risk. STRAYER EDUCATION is currently generating about 0.1 per unit of volatility. If you would invest  8,943  in STRAYER EDUCATION on November 19, 2024 and sell it today you would earn a total of  707.00  from holding STRAYER EDUCATION or generate 7.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Align Technology  vs.  STRAYER EDUCATION

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50510
JavaScript chart by amCharts 3.21.15AFW SQE
       Timeline  
Align Technology 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Align Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Align Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb195200205210215220225230
STRAYER EDUCATION 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in STRAYER EDUCATION are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, STRAYER EDUCATION may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb888990919293949596

Align Technology and STRAYER EDUCATION Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.24-2.43-1.61-0.80.00.791.592.383.17 0.050.100.150.20
JavaScript chart by amCharts 3.21.15AFW SQE
       Returns  

Pair Trading with Align Technology and STRAYER EDUCATION

The main advantage of trading using opposite Align Technology and STRAYER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Align Technology position performs unexpectedly, STRAYER EDUCATION 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 STRAYER EDUCATION will offset losses from the drop in STRAYER EDUCATION's long position.
The idea behind Align Technology and STRAYER EDUCATION pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account


 

Trending Assets

ZBFH
ZB FINANCIAL HOLDINGS
469.95  -0.05  -0.01 
REV
Revitus Property Opp
90.00  0.00  0.00 
CAFCA
CAFCA LIMITED
1,800  0.00  0.00 
AFDS
AFRICAN DISTILLERS
660.00  0.00  0.00 
FMP
FIRST MUTUAL PROPERTIES
102.95  -1  -0.96 
TANG
TANGANDA TEA PANY
153.00  0.60  0.39 
NULL
Nedbank Group Limited
0.00  0.00  0.00 
MCMS
Morgan Co Multi
199.95  -0.05  -0.03 
SACL
STAR AFRICA PORATION
2.85  0.15  5.56