Correlation Between Golden Sun and Chegg

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

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

Diversification Opportunities for Golden Sun and Chegg

-0.65

Correlation Coefficient

Golden Sun  Chegg

Excellent diversification

The 3 months correlation between Golden and Chegg is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Golden Sun Education and Chegg Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chegg Inc and Golden Sun 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 Golden Sun 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 Golden Sun i.e., Golden Sun and Chegg go up and down completely randomly.

Pair Corralation between Golden Sun and Chegg

Given the investment horizon of 90 days Golden Sun Education is expected to under-perform the Chegg. But the stock apears to be less risky and, when comparing its historical volatility, Golden Sun Education is 1.57 times less risky than Chegg. The stock trades about -0.1 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 5, 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	Weak
Accuracy	100.0%
Values	Daily Returns

Golden Sun Education  vs.  Chegg Inc

Golden Sun Education

Risk-Adjusted Performance

Very Weak

Over the last 90 days Golden Sun Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm 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 Golden Sun and Chegg

The main advantage of trading using opposite Golden Sun and Chegg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Sun 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 Golden Sun 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.