Correlation Between Bright Scholar and Figs
Can any of the company-specific risk be diversified away by investing in both Bright Scholar and Figs 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 Figs 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 Figs Inc, you can compare the effects of market volatilities on Bright Scholar and Figs 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 Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and Figs.
Diversification Opportunities for Bright Scholar and Figs
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bright and Figs is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc 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 Figs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figs Inc has no effect on the direction of Bright Scholar i.e., Bright Scholar and Figs go up and down completely randomly.
Pair Corralation between Bright Scholar and Figs
Given the investment horizon of 90 days Bright Scholar Education is expected to generate 0.69 times more return on investment than Figs. However, Bright Scholar Education is 1.45 times less risky than Figs. It trades about -0.04 of its potential returns per unit of risk. Figs Inc is currently generating about -0.03 per unit of risk. If you would invest 194.00 in Bright Scholar Education on September 3, 2024 and sell it today you would lose (19.00) from holding Bright Scholar Education or give up 9.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Bright Scholar Education vs. Figs Inc
Performance |
| Timeline |
| Bright Scholar Education |
| Figs Inc |
Bright Scholar and Figs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and Figs
The main advantage of trading using opposite Bright Scholar and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, Figs 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 Figs will offset losses from the drop in Figs' 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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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