Correlation Between GEORGE and Codan

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

By analyzing existing cross correlation between GEORGE WASH UNIV and Codan Limited, you can compare the effects of market volatilities on GEORGE and Codan 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 GEORGE with a short position of Codan. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEORGE and Codan.

Diversification Opportunities for GEORGE and Codan

0.0

Correlation Coefficient

GEORGE  Codan

Pay attention - limited upside

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

Pair Corralation between GEORGE and Codan

If you would invest  711.00  in Codan Limited on May 3, 2025 and sell it today you would earn a total of  348.00  from holding Codan Limited or generate 48.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GEORGE WASH UNIV  vs.  Codan Limited

GEORGE WASH UNIV

Risk-Adjusted Performance

Weak

Over the last 90 days GEORGE WASH UNIV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GEORGE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Codan Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Codan Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Codan reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GEORGE and Codan

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

The idea behind GEORGE WASH UNIV and Codan Limited 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.