Correlation Between CODERE ONLINE and EMBARK EDUCATION

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

By analyzing existing cross correlation between CODERE ONLINE LUX and EMBARK EDUCATION LTD, you can compare the effects of market volatilities on CODERE ONLINE and EMBARK 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 CODERE ONLINE with a short position of EMBARK EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of CODERE ONLINE and EMBARK EDUCATION.

Diversification Opportunities for CODERE ONLINE and EMBARK EDUCATION

0.0

Correlation Coefficient

CODERE ONLINE  EMBARK EDUCATION

Pay attention - limited upside

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

Pair Corralation between CODERE ONLINE and EMBARK EDUCATION

If you would invest  615.00  in CODERE ONLINE LUX on April 23, 2025 and sell it today you would earn a total of  95.00  from holding CODERE ONLINE LUX or generate 15.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CODERE ONLINE LUX  vs.  EMBARK EDUCATION LTD

CODERE ONLINE LUX

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CODERE ONLINE LUX are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CODERE ONLINE reported solid returns over the last few months and may actually be approaching a breakup point.

EMBARK EDUCATION LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days EMBARK EDUCATION LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EMBARK EDUCATION is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CODERE ONLINE and EMBARK EDUCATION

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

The idea behind CODERE ONLINE LUX and EMBARK EDUCATION LTD 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.