Correlation Between Bright Scholar and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both Bright Scholar and Willscot Mobile 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 Willscot Mobile 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 Willscot Mobile Mini, you can compare the effects of market volatilities on Bright Scholar and Willscot Mobile 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 Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Scholar and Willscot Mobile.
Diversification Opportunities for Bright Scholar and Willscot Mobile
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bright and Willscot is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bright Scholar Education and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini 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 Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of Bright Scholar i.e., Bright Scholar and Willscot Mobile go up and down completely randomly.
Pair Corralation between Bright Scholar and Willscot Mobile
Given the investment horizon of 90 days Bright Scholar Education is expected to generate 0.65 times more return on investment than Willscot Mobile. However, Bright Scholar Education is 1.53 times less risky than Willscot Mobile. It trades about -0.05 of its potential returns per unit of risk. Willscot Mobile Mini is currently generating about -0.05 per unit of risk. If you would invest 190.00 in Bright Scholar Education on August 26, 2024 and sell it today you would lose (7.00) from holding Bright Scholar Education or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bright Scholar Education vs. Willscot Mobile Mini
Performance |
| Timeline |
| Bright Scholar Education |
| Willscot Mobile Mini |
Bright Scholar and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Scholar and Willscot Mobile
The main advantage of trading using opposite Bright Scholar and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Scholar position performs unexpectedly, Willscot Mobile 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 Willscot Mobile will offset losses from the drop in Willscot Mobile'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 |
| Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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