Correlation Between Lendlease Global and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Lendlease Global 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 Lendlease Global and Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Global Commercial and Bright Scholar Education, you can compare the effects of market volatilities on Lendlease Global 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 Lendlease Global with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease Global and Bright Scholar.
Diversification Opportunities for Lendlease Global and Bright Scholar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and Bright is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial 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 Lendlease Global 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 Lendlease Global Commercial 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 Lendlease Global i.e., Lendlease Global and Bright Scholar go up and down completely randomly.
Pair Corralation between Lendlease Global and Bright Scholar
If you would invest 186.00 in Bright Scholar Education on August 30, 2024 and sell it today you would lose (1.00) from holding Bright Scholar Education or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lendlease Global Commercial vs. Bright Scholar Education
Performance |
| Timeline |
| Lendlease Global Com |
| Bright Scholar Education |
Lendlease Global and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease Global and Bright Scholar
The main advantage of trading using opposite Lendlease Global and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global 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.| Lendlease Global vs. FiscalNote Holdings | Lendlease Global vs. Zhihu Inc ADR | Lendlease Global vs. Kaltura | Lendlease Global vs. Playtech plc |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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