Correlation Between Marex Group and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Marex Group 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 Marex Group and Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marex Group plc and Bright Scholar Education, you can compare the effects of market volatilities on Marex Group 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 Marex Group with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marex Group and Bright Scholar.
Diversification Opportunities for Marex Group and Bright Scholar
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marex and Bright is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marex Group plc 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 Marex Group 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 Marex Group plc 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 Marex Group i.e., Marex Group and Bright Scholar go up and down completely randomly.
Pair Corralation between Marex Group and Bright Scholar
Considering the 90-day investment horizon Marex Group plc is expected to generate 0.46 times more return on investment than Bright Scholar. However, Marex Group plc is 2.2 times less risky than Bright Scholar. It trades about 0.23 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 1,878 in Marex Group plc on November 3, 2024 and sell it today you would earn a total of 1,696 from holding Marex Group plc or generate 90.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Marex Group plc vs. Bright Scholar Education
Performance |
| Timeline |
| Marex Group plc |
| Bright Scholar Education |
Marex Group and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marex Group and Bright Scholar
The main advantage of trading using opposite Marex Group and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marex Group 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.| Marex Group vs. Cracker Barrel Old | Marex Group vs. Ispire Technology Common | Marex Group vs. First Watch Restaurant | Marex Group vs. Dine Brands Global |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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