Correlation Between So Young and BrightSpring Health
Can any of the company-specific risk be diversified away by investing in both So Young and BrightSpring Health 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 So Young and BrightSpring Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between So Young International and BrightSpring Health Services,, you can compare the effects of market volatilities on So Young and BrightSpring Health 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 So Young with a short position of BrightSpring Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and BrightSpring Health.
Diversification Opportunities for So Young and BrightSpring Health
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between So Young and BrightSpring is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and BrightSpring Health Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightSpring Health and So Young 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 So Young International are associated (or correlated) with BrightSpring Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightSpring Health has no effect on the direction of So Young i.e., So Young and BrightSpring Health go up and down completely randomly.
Pair Corralation between So Young and BrightSpring Health
Allowing for the 90-day total investment horizon So Young International is expected to generate 2.46 times more return on investment than BrightSpring Health. However, So Young is 2.46 times more volatile than BrightSpring Health Services,. It trades about 0.29 of its potential returns per unit of risk. BrightSpring Health Services, is currently generating about 0.21 per unit of risk. If you would invest 77.00 in So Young International on October 22, 2024 and sell it today you would earn a total of 16.00 from holding So Young International or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
So Young International vs. BrightSpring Health Services,
Performance |
| Timeline |
| So Young International |
| BrightSpring Health |
So Young and BrightSpring Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and BrightSpring Health
The main advantage of trading using opposite So Young and BrightSpring Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, BrightSpring Health 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 BrightSpring Health will offset losses from the drop in BrightSpring Health's long position.| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
| BrightSpring Health vs. NETGEAR | BrightSpring Health vs. United Fire Group | BrightSpring Health vs. Universal Insurance Holdings | BrightSpring Health vs. National CineMedia |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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