Correlation Between Bright Scholar and LOBO EV
Can any of the company-specific risk be diversified away by investing in both Bright Scholar and LOBO EV 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 LOBO EV 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 LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on Bright Scholar and LOBO EV 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 LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and LOBO EV.
Diversification Opportunities for Bright Scholar and LOBO EV
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bright and LOBO is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV 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 LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Bright Scholar i.e., Bright Scholar and LOBO EV go up and down completely randomly.
Pair Corralation between Bright Scholar and LOBO EV
Given the investment horizon of 90 days Bright Scholar Education is expected to generate 0.59 times more return on investment than LOBO EV. However, Bright Scholar Education is 1.7 times less risky than LOBO EV. It trades about 0.01 of its potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about 0.0 per unit of risk. If you would invest 195.00 in Bright Scholar Education on September 3, 2024 and sell it today you would lose (20.00) from holding Bright Scholar Education or give up 10.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.26% |
| Values | Daily Returns |
Bright Scholar Education vs. LOBO EV TECHNOLOGIES
Performance |
| Timeline |
| Bright Scholar Education |
| LOBO EV TECHNOLOGIES |
Bright Scholar and LOBO EV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and LOBO EV
The main advantage of trading using opposite Bright Scholar and LOBO EV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, LOBO EV 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 LOBO EV will offset losses from the drop in LOBO EV'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 |
| LOBO EV vs. Marine Products | LOBO EV vs. CarsalesCom Ltd ADR | LOBO EV vs. Proficient Auto Logistics, | LOBO EV 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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