Correlation Between Consumer Portfolio and Coursera

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

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

Diversification Opportunities for Consumer Portfolio and Coursera

0.36

Correlation Coefficient

Consumer Portfolio  Coursera

Weak diversification

The 3 months correlation between Consumer and Coursera is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Portfolio Services and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera and Consumer Portfolio 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 Consumer Portfolio Services are associated (or correlated) with Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of Consumer Portfolio i.e., Consumer Portfolio and Coursera go up and down completely randomly.

Pair Corralation between Consumer Portfolio and Coursera

Given the investment horizon of 90 days Consumer Portfolio is expected to generate 27.96 times less return on investment than Coursera. But when comparing it to its historical volatility, Consumer Portfolio Services is 1.02 times less risky than Coursera. It trades about 0.0 of its potential returns per unit of risk. Coursera is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  770.00  in Coursera on April 24, 2025 and sell it today you would earn a total of  122.00  from holding Coursera or generate 15.84% return on investment over 90 days.

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

Consumer Portfolio Services  vs.  Coursera

Consumer Portfolio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Consumer Portfolio Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Consumer Portfolio is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Coursera

Risk-Adjusted Performance

OK

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

Pair Trading with Consumer Portfolio and Coursera

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

The idea behind Consumer Portfolio Services and Coursera 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.