Correlation Between Bright Scholar and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Bright Scholar and Inhibrx 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 Inhibrx 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 Inhibrx, you can compare the effects of market volatilities on Bright Scholar and Inhibrx 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 Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and Inhibrx.
Diversification Opportunities for Bright Scholar and Inhibrx
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bright and Inhibrx is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx 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 Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of Bright Scholar i.e., Bright Scholar and Inhibrx go up and down completely randomly.
Pair Corralation between Bright Scholar and Inhibrx
Given the investment horizon of 90 days Bright Scholar Education is expected to generate 0.99 times more return on investment than Inhibrx. However, Bright Scholar Education is 1.01 times less risky than Inhibrx. It trades about -0.09 of its potential returns per unit of risk. Inhibrx is currently generating about -0.16 per unit of risk. If you would invest 195.00 in Bright Scholar Education on August 24, 2024 and sell it today you would lose (12.00) from holding Bright Scholar Education or give up 6.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Bright Scholar Education vs. Inhibrx
Performance |
| Timeline |
| Bright Scholar Education |
| Inhibrx |
Bright Scholar and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and Inhibrx
The main advantage of trading using opposite Bright Scholar and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, Inhibrx 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 Inhibrx will offset losses from the drop in Inhibrx'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 |
| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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