Asset Comparison and Correlation

Given investment horizon of 30 days, Capella Education is expected to under-perform the Strayer. But the stock apears to be less risky and, when comparing its historical volatility, Capella Education is 1.86 times less risky than Strayer. The stock trades about -0.05 of its potential returns per unit of risk. The Strayer Education Inc. is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,905 in Strayer Education Inc. on April 25, 2012 and sell it today you would lose (1,280) from holding Strayer Education Inc. or give up 12.92% of portfolio value over 30 days.