Correlation Between Bright Scholar and ETRADE Financial
Can any of the company-specific risk be diversified away by investing in both Bright Scholar and ETRADE Financial 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 ETRADE Financial 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 ETRADE Financial LLC, you can compare the effects of market volatilities on Bright Scholar and ETRADE Financial 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 ETRADE Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and ETRADE Financial.
Diversification Opportunities for Bright Scholar and ETRADE Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bright and ETRADE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and ETRADE Financial LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETRADE Financial LLC 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 ETRADE Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETRADE Financial LLC has no effect on the direction of Bright Scholar i.e., Bright Scholar and ETRADE Financial go up and down completely randomly.
Pair Corralation between Bright Scholar and ETRADE Financial
If you would invest 177.00 in Bright Scholar Education on October 11, 2024 and sell it today you would lose (7.00) from holding Bright Scholar Education or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bright Scholar Education vs. ETRADE Financial LLC
Performance |
| Timeline |
| Bright Scholar Education |
| ETRADE Financial LLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bright Scholar and ETRADE Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and ETRADE Financial
The main advantage of trading using opposite Bright Scholar and ETRADE Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, ETRADE Financial 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 ETRADE Financial will offset losses from the drop in ETRADE Financial'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 |
| ETRADE Financial vs. Vasta Platform | ETRADE Financial vs. Altria Group | ETRADE Financial vs. Compania Cervecerias Unidas | ETRADE Financial vs. Bright Scholar Education |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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