Correlation Between Bright Scholar and GCP Applied
Can any of the company-specific risk be diversified away by investing in both Bright Scholar and GCP Applied 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 GCP Applied 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 GCP Applied Technologies, you can compare the effects of market volatilities on Bright Scholar and GCP Applied 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 GCP Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and GCP Applied.
Diversification Opportunities for Bright Scholar and GCP Applied
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bright and GCP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and GCP Applied Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCP Applied Technologies 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 GCP Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCP Applied Technologies has no effect on the direction of Bright Scholar i.e., Bright Scholar and GCP Applied go up and down completely randomly.
Pair Corralation between Bright Scholar and GCP Applied
If you would invest 256.00 in Bright Scholar Education on October 13, 2024 and sell it today you would lose (82.00) from holding Bright Scholar Education or give up 32.03% 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. GCP Applied Technologies
Performance |
| Timeline |
| Bright Scholar Education |
| GCP Applied Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bright Scholar and GCP Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and GCP Applied
The main advantage of trading using opposite Bright Scholar and GCP Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, GCP Applied 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 GCP Applied will offset losses from the drop in GCP Applied'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 |
| GCP Applied vs. Cannae Holdings | GCP Applied vs. WPP PLC ADR | GCP Applied vs. Shake Shack | GCP Applied vs. Cracker Barrel Old |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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