Correlation Between CONSUMERS and Bright Scholar
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By analyzing existing cross correlation between CONSUMERS ENERGY 325 and Bright Scholar Education, you can compare the effects of market volatilities on CONSUMERS 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 CONSUMERS with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSUMERS and Bright Scholar.
Diversification Opportunities for CONSUMERS and Bright Scholar
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CONSUMERS and Bright is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CONSUMERS ENERGY 325 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 CONSUMERS 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 CONSUMERS ENERGY 325 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 CONSUMERS i.e., CONSUMERS and Bright Scholar go up and down completely randomly.
Pair Corralation between CONSUMERS and Bright Scholar
Assuming the 90 days trading horizon CONSUMERS ENERGY 325 is expected to under-perform the Bright Scholar. But the bond apears to be less risky and, when comparing its historical volatility, CONSUMERS ENERGY 325 is 1.17 times less risky than Bright Scholar. The bond trades about -0.12 of its potential returns per unit of risk. The Bright Scholar Education is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 196.00 in Bright Scholar Education on September 4, 2024 and sell it today you would lose (12.00) from holding Bright Scholar Education or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
CONSUMERS ENERGY 325 vs. Bright Scholar Education
Performance |
| Timeline |
| CONSUMERS ENERGY 325 |
| Bright Scholar Education |
CONSUMERS and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSUMERS and Bright Scholar
The main advantage of trading using opposite CONSUMERS and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSUMERS 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.| CONSUMERS vs. Allient | CONSUMERS vs. China Tontine Wines | CONSUMERS vs. NextNav Warrant | CONSUMERS vs. Nascent Wine |
| 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 Managers module to screen money managers from public funds and ETFs managed around the world.
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