Correlation Between FEDEX and Bright Scholar
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By analyzing existing cross correlation between FEDEX P 405 and Bright Scholar Education, you can compare the effects of market volatilities on FEDEX 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 FEDEX with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and Bright Scholar.
Diversification Opportunities for FEDEX and Bright Scholar
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FEDEX and Bright is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 405 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 FEDEX 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 FEDEX P 405 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 FEDEX i.e., FEDEX and Bright Scholar go up and down completely randomly.
Pair Corralation between FEDEX and Bright Scholar
Assuming the 90 days trading horizon FEDEX P 405 is expected to generate 0.4 times more return on investment than Bright Scholar. However, FEDEX P 405 is 2.52 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 -0.1 per unit of risk. If you would invest 7,939 in FEDEX P 405 on September 4, 2024 and sell it today you would earn a total of 360.00 from holding FEDEX P 405 or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
FEDEX P 405 vs. Bright Scholar Education
Performance |
| Timeline |
| FEDEX P 405 |
| Bright Scholar Education |
FEDEX and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEDEX and Bright Scholar
The main advantage of trading using opposite FEDEX and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX 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.The idea behind FEDEX P 405 and Bright Scholar Education pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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