Correlation Between Coursera and United States

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

By analyzing existing cross correlation between Coursera and United States Steel, you can compare the effects of market volatilities on Coursera and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coursera and United States.

Diversification Opportunities for Coursera and United States

-0.61

Correlation Coefficient

Coursera  United States

Excellent diversification

The 3 months correlation between Coursera and United is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Coursera and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Coursera i.e., Coursera and United States go up and down completely randomly.

Pair Corralation between Coursera and United States

Given the investment horizon of 90 days Coursera is expected to under-perform the United States. In addition to that, Coursera is 1.14 times more volatile than United States Steel. It trades about -0.01 of its total potential returns per unit of risk. United States Steel is currently generating about 0.03 per unit of volatility. If you would invest  2,785  in United States Steel on October 13, 2024 and sell it today you would earn a total of  639.00  from holding United States Steel or generate 22.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Coursera  vs.  United States Steel

Coursera

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Coursera are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Coursera may actually be approaching a critical reversion point that can send shares even higher in February 2025.

United States Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United States Steel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, United States 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 United States

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

The idea behind Coursera and United States Steel 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.