Correlation Between Pinterest and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Pinterest 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 Pinterest and Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and Bright Scholar Education, you can compare the effects of market volatilities on Pinterest 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 Pinterest with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and Bright Scholar.
Diversification Opportunities for Pinterest and Bright Scholar
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pinterest and Bright is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest 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 Pinterest 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 Pinterest 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 Pinterest i.e., Pinterest and Bright Scholar go up and down completely randomly.
Pair Corralation between Pinterest and Bright Scholar
Given the investment horizon of 90 days Pinterest is expected to under-perform the Bright Scholar. In addition to that, Pinterest is 1.24 times more volatile than Bright Scholar Education. It trades about -0.05 of its total potential returns per unit of risk. Bright Scholar Education is currently generating about -0.05 per unit of volatility. If you would invest 190.00 in Bright Scholar Education on August 25, 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 Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Pinterest vs. Bright Scholar Education
Performance |
| Timeline |
| Bright Scholar Education |
Pinterest and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and Bright Scholar
The main advantage of trading using opposite Pinterest and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest 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.| Pinterest vs. Twilio Inc | Pinterest vs. Baidu Inc | Pinterest vs. Snap Inc | Pinterest vs. ANGI Homeservices |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |