Correlation Between Hailiang Education and Brunswick
Can any of the company-specific risk be diversified away by investing in both Hailiang Education and Brunswick 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 Hailiang Education and Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hailiang Education Group and Brunswick, you can compare the effects of market volatilities on Hailiang Education and Brunswick 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 Hailiang Education with a short position of Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hailiang Education and Brunswick.
Diversification Opportunities for Hailiang Education and Brunswick
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hailiang and Brunswick is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hailiang Education Group and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick and Hailiang Education 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 Hailiang Education Group are associated (or correlated) with Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of Hailiang Education i.e., Hailiang Education and Brunswick go up and down completely randomly.
Pair Corralation between Hailiang Education and Brunswick
If you would invest 7,031 in Brunswick on January 19, 2024 and sell it today you would earn a total of 1,177 from holding Brunswick or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hailiang Education Group vs. Brunswick
Performance |
| Timeline |
| Hailiang Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brunswick |
Hailiang Education and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hailiang Education and Brunswick
The main advantage of trading using opposite Hailiang Education and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hailiang Education position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.| Hailiang Education vs. BBB Foods | Hailiang Education vs. Sea | Hailiang Education vs. Papaya Growth Opportunity | Hailiang Education vs. National Vision Holdings |
| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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