Correlation Between Bright Scholar and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Bright Scholar and Altimar Acquisition 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 Bright Scholar and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bright Scholar Education and Altimar Acquisition Corp, you can compare the effects of market volatilities on Bright Scholar and Altimar Acquisition 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 Bright Scholar with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and Altimar Acquisition.
Diversification Opportunities for Bright Scholar and Altimar Acquisition
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bright and Altimar is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and Altimar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimar Acquisition Corp and Bright Scholar 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 Bright Scholar Education are associated (or correlated) with Altimar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimar Acquisition Corp has no effect on the direction of Bright Scholar i.e., Bright Scholar and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Bright Scholar and Altimar Acquisition
If you would invest 5.00 in Altimar Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Altimar Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bright Scholar Education vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Bright Scholar Education |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bright Scholar and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and Altimar Acquisition
The main advantage of trading using opposite Bright Scholar and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, Altimar Acquisition 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 Altimar Acquisition will offset losses from the drop in Altimar Acquisition's long position.| Bright Scholar vs. Laureate Education | Bright Scholar vs. China Liberal Education | Bright Scholar vs. Adtalem Global Education | Bright Scholar vs. Grand Canyon Education |
| Altimar Acquisition vs. Canlan Ice Sports | Altimar Acquisition vs. Pearson PLC ADR | Altimar Acquisition vs. Bright Scholar Education | Altimar Acquisition vs. Mesa Air Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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