Correlation Between Graham Holdings and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Graham Holdings 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 Graham Holdings and Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Bright Scholar Education, you can compare the effects of market volatilities on Graham Holdings 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 Graham Holdings with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Bright Scholar.
Diversification Opportunities for Graham Holdings and Bright Scholar
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graham and Bright is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co 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 Graham Holdings 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 Graham Holdings Co 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 Graham Holdings i.e., Graham Holdings and Bright Scholar go up and down completely randomly.
Pair Corralation between Graham Holdings and Bright Scholar
Considering the 90-day investment horizon Graham Holdings Co is expected to generate 0.55 times more return on investment than Bright Scholar. However, Graham Holdings Co is 1.81 times less risky than Bright Scholar. It trades about 0.18 of its potential returns per unit of risk. Bright Scholar Education is currently generating about 0.0 per unit of risk. If you would invest 95,332 in Graham Holdings Co on June 10, 2025 and sell it today you would earn a total of 17,812 from holding Graham Holdings Co or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham Holdings Co vs. Bright Scholar Education
Performance |
| Timeline |
| Graham Holdings |
| Bright Scholar Education |
Graham Holdings and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Bright Scholar
The main advantage of trading using opposite Graham Holdings and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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.| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
| Bright Scholar vs. Sunlands Technology Group | Bright Scholar vs. American Public Education | Bright Scholar vs. Ihuman Inc | Bright Scholar vs. Adtalem Global 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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