Correlation Between Inflection Point and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Inflection Point 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 Inflection Point and Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Bright Scholar Education, you can compare the effects of market volatilities on Inflection Point 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 Inflection Point with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Bright Scholar.
Diversification Opportunities for Inflection Point and Bright Scholar
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inflection and Bright is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition 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 Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and Bright Scholar go up and down completely randomly.
Pair Corralation between Inflection Point and Bright Scholar
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 10.15 times more return on investment than Bright Scholar. However, Inflection Point is 10.15 times more volatile than Bright Scholar Education. It trades about 0.05 of its potential returns per unit of risk. Bright Scholar Education is currently generating about 0.01 per unit of risk. If you would invest 0.00 in Inflection Point Acquisition on August 30, 2024 and sell it today you would earn a total of 1,086 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.8% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Bright Scholar Education
Performance |
| Timeline |
| Inflection Point Acq |
| Bright Scholar Education |
Inflection Point and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Bright Scholar
The main advantage of trading using opposite Inflection Point and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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.| Inflection Point vs. Patria Latin American | Inflection Point vs. ABIVAX Socit Anonyme | Inflection Point vs. Pinnacle Sherman Multi Strategy | Inflection Point vs. Morningstar Unconstrained Allocation |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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