Correlation Between Capital Clean and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Capital Clean and Bright Scholar 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 Capital Clean and Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and Bright Scholar Education, you can compare the effects of market volatilities on Capital Clean and Bright Scholar 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 Capital Clean with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Bright Scholar.
Diversification Opportunities for Capital Clean and Bright Scholar
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capital and Bright is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and Bright Scholar Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Scholar Education and Capital Clean 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 Capital Clean Energy are associated (or correlated) with Bright Scholar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Scholar Education has no effect on the direction of Capital Clean i.e., Capital Clean and Bright Scholar go up and down completely randomly.
Pair Corralation between Capital Clean and Bright Scholar
Given the investment horizon of 90 days Capital Clean is expected to generate 4.01 times less return on investment than Bright Scholar. But when comparing it to its historical volatility, Capital Clean Energy is 2.84 times less risky than Bright Scholar. It trades about 0.03 of its potential returns per unit of risk. Bright Scholar Education is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Bright Scholar Education on January 9, 2025 and sell it today you would earn a total of 68.00 from holding Bright Scholar Education or generate 67.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Capital Clean Energy vs. Bright Scholar Education
Performance |
| Timeline |
| Capital Clean Energy |
| Bright Scholar Education |
Capital Clean and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Clean and Bright Scholar
The main advantage of trading using opposite Capital Clean and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean position performs unexpectedly, Bright Scholar 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 Bright Scholar will offset losses from the drop in Bright Scholar's long position.| Capital Clean vs. Nyxoah | Capital Clean vs. Chiba Bank Ltd | Capital Clean vs. Exchange Bank | Capital Clean vs. Commonwealth Bank of |
| Bright Scholar vs. Laureate Education | Bright Scholar vs. China Liberal Education | Bright Scholar vs. Adtalem Global Education | Bright Scholar vs. Grand Canyon 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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