Correlation Between Elite Education and GetSwift Technologies

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

By analyzing existing cross correlation between Elite Education Group and GetSwift Technologies Limited, you can compare the effects of market volatilities on Elite Education and GetSwift Technologies 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 Elite Education with a short position of GetSwift Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Education and GetSwift Technologies.

Diversification Opportunities for Elite Education and GetSwift Technologies

0.0

Correlation Coefficient

Elite Education  GetSwift Technologies

Pay attention - limited upside

The 3 months correlation between Elite and GetSwift is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elite Education Group and GetSwift Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GetSwift Technologies and Elite 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 Elite Education Group are associated (or correlated) with GetSwift Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GetSwift Technologies has no effect on the direction of Elite Education i.e., Elite Education and GetSwift Technologies go up and down completely randomly.

Pair Corralation between Elite Education and GetSwift Technologies

Given the investment horizon of 90 days Elite Education is expected to generate 25.2 times less return on investment than GetSwift Technologies. But when comparing it to its historical volatility, Elite Education Group is 5.17 times less risky than GetSwift Technologies. It trades about 0.03 of its potential returns per unit of risk. GetSwift Technologies Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.07  in GetSwift Technologies Limited on October 26, 2024 and sell it today you would lose (0.06) from holding GetSwift Technologies Limited or give up 85.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	21.72%
Values	Daily Returns

Elite Education Group  vs.  GetSwift Technologies Limited

Elite Education Group

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Elite Education Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating forward indicators, Elite Education reported solid returns over the last few months and may actually be approaching a breakup point.

GetSwift Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GetSwift Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GetSwift Technologies is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Elite Education and GetSwift Technologies

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

The idea behind Elite Education Group and GetSwift Technologies Limited 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .