Correlation Between Bright Scholar and SOUTHWESTERN
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By analyzing existing cross correlation between Bright Scholar Education and SOUTHWESTERN ELEC PWR, you can compare the effects of market volatilities on Bright Scholar and SOUTHWESTERN 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 SOUTHWESTERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and SOUTHWESTERN.
Diversification Opportunities for Bright Scholar and SOUTHWESTERN
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bright and SOUTHWESTERN is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and SOUTHWESTERN ELEC PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHWESTERN ELEC PWR 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 SOUTHWESTERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHWESTERN ELEC PWR has no effect on the direction of Bright Scholar i.e., Bright Scholar and SOUTHWESTERN go up and down completely randomly.
Pair Corralation between Bright Scholar and SOUTHWESTERN
Given the investment horizon of 90 days Bright Scholar is expected to generate 71.36 times less return on investment than SOUTHWESTERN. But when comparing it to its historical volatility, Bright Scholar Education is 9.05 times less risky than SOUTHWESTERN. It trades about 0.01 of its potential returns per unit of risk. SOUTHWESTERN ELEC PWR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,222 in SOUTHWESTERN ELEC PWR on December 4, 2024 and sell it today you would earn a total of 283.00 from holding SOUTHWESTERN ELEC PWR or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.18% |
| Values | Daily Returns |
Bright Scholar Education vs. SOUTHWESTERN ELEC PWR
Performance |
| Timeline |
| Bright Scholar Education |
| SOUTHWESTERN ELEC PWR |
Bright Scholar and SOUTHWESTERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and SOUTHWESTERN
The main advantage of trading using opposite Bright Scholar and SOUTHWESTERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, SOUTHWESTERN 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 SOUTHWESTERN will offset losses from the drop in SOUTHWESTERN'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 |
| SOUTHWESTERN vs. JBG SMITH Properties | SOUTHWESTERN vs. Mesa Air Group | SOUTHWESTERN vs. 51Talk Online Education | SOUTHWESTERN vs. Norfolk Southern |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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