Correlation Between Skillful Craftsman and Coursera

Can any of the company-specific risk be diversified away by investing in both Skillful Craftsman 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 Skillful Craftsman and Coursera 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 Coursera, you can compare the effects of market volatilities on Skillful Craftsman 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 Skillful Craftsman with a short position of Coursera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skillful Craftsman and Coursera.

Diversification Opportunities for Skillful Craftsman and Coursera

-0.02

Correlation Coefficient

Skillful Craftsman  Coursera

Good diversification

The 3 months correlation between Skillful and Coursera is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Skillful Craftsman Education and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera 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 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 Skillful Craftsman i.e., Skillful Craftsman and Coursera go up and down completely randomly.

Pair Corralation between Skillful Craftsman and Coursera

Given the investment horizon of 90 days Skillful Craftsman Education is expected to under-perform the Coursera. But the stock apears to be less risky and, when comparing its historical volatility, Skillful Craftsman Education is 1.18 times less risky than Coursera. The stock trades about -0.03 of its potential returns per unit of risk. The Coursera is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  860.00  in Coursera on May 4, 2025 and sell it today you would earn a total of  357.00  from holding Coursera or generate 41.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Skillful Craftsman Education  vs.  Coursera

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.

Coursera

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coursera are ranked lower than 10 (%) 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 Skillful Craftsman and Coursera

The main advantage of trading using opposite Skillful Craftsman and Coursera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skillful Craftsman 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 Skillful Craftsman Education 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.