Correlation Between Skillful Craftsman and Chegg

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

By analyzing existing cross correlation between Skillful Craftsman Education and Chegg Inc, you can compare the effects of market volatilities on Skillful Craftsman and Chegg 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 Skillful Craftsman with a short position of Chegg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skillful Craftsman and Chegg.

Diversification Opportunities for Skillful Craftsman and Chegg

-0.14

Correlation Coefficient

Skillful Craftsman  Chegg

Good diversification

The 3 months correlation between Skillful and Chegg is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Skillful Craftsman Education and Chegg Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chegg Inc and Skillful Craftsman 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 Skillful Craftsman Education are associated (or correlated) with Chegg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chegg Inc has no effect on the direction of Skillful Craftsman i.e., Skillful Craftsman and Chegg go up and down completely randomly.

Pair Corralation between Skillful Craftsman and Chegg

Given the investment horizon of 90 days Skillful Craftsman Education is expected to under-perform the Chegg. But the stock apears to be less risky and, when comparing its historical volatility, Skillful Craftsman Education is 1.83 times less risky than Chegg. The stock trades about -0.03 of its potential returns per unit of risk. The Chegg Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  73.00  in Chegg Inc on May 4, 2025 and sell it today you would earn a total of  53.00  from holding Chegg Inc or generate 72.6% return on investment over 90 days.

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

Skillful Craftsman Education  vs.  Chegg Inc

Skillful Craftsman

Risk-Adjusted Performance

Very Weak

Over the last 90 days Skillful Craftsman Education has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Chegg Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chegg Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Chegg reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Skillful Craftsman and Chegg

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

The idea behind Skillful Craftsman Education and Chegg Inc 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.