Correlation Between Coursera and SIMON

Can any of the company-specific risk be diversified away by investing in both Coursera and SIMON 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 Coursera and SIMON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coursera and SIMON PPTY GROUP, you can compare the effects of market volatilities on Coursera and SIMON 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 Coursera with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coursera and SIMON.

Diversification Opportunities for Coursera and SIMON

-0.08

Correlation Coefficient

Coursera  SIMON

Good diversification

The 3 months correlation between Coursera and SIMON is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coursera and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP and Coursera 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 Coursera are associated (or correlated) with SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Coursera i.e., Coursera and SIMON go up and down completely randomly.

Pair Corralation between Coursera and SIMON

Given the investment horizon of 90 days Coursera is expected to under-perform the SIMON. In addition to that, Coursera is 3.17 times more volatile than SIMON PPTY GROUP. It trades about -0.08 of its total potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.02 per unit of volatility. If you would invest  8,972  in SIMON PPTY GROUP on December 29, 2024 and sell it today you would earn a total of  59.00  from holding SIMON PPTY GROUP or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.69%
Values	Daily Returns

Coursera  vs.  SIMON PPTY GROUP

Coursera

Risk-Adjusted Performance

Very Weak

Over the last 90 days Coursera has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

SIMON PPTY GROUP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SIMON PPTY GROUP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SIMON is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Coursera and SIMON

The main advantage of trading using opposite Coursera and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coursera position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.

The idea behind Coursera and SIMON PPTY GROUP 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.