Correlation Between Brightsphere Investment and Polarityte

Can any of the company-specific risk be diversified away by investing in both Brightsphere Investment and Polarityte 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 Brightsphere Investment and Polarityte into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brightsphere Investment Group and Polarityte, you can compare the effects of market volatilities on Brightsphere Investment and Polarityte 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 Brightsphere Investment with a short position of Polarityte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brightsphere Investment and Polarityte.

Diversification Opportunities for Brightsphere Investment and Polarityte

0.0

Correlation Coefficient

Brightsphere Investment  Polarityte

Pay attention - limited upside

The 3 months correlation between Brightsphere and Polarityte is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brightsphere Investment Group and Polarityte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polarityte and Brightsphere Investment 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 Brightsphere Investment Group are associated (or correlated) with Polarityte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polarityte has no effect on the direction of Brightsphere Investment i.e., Brightsphere Investment and Polarityte go up and down completely randomly.

Pair Corralation between Brightsphere Investment and Polarityte

If you would invest  1,941  in Brightsphere Investment Group on October 10, 2024 and sell it today you would earn a total of  693.00  from holding Brightsphere Investment Group or generate 35.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.41%
Values	Daily Returns

Brightsphere Investment Group  vs.  Polarityte

Brightsphere Investment

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Brightsphere Investment Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward indicators, Brightsphere Investment may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Polarityte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polarityte has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Polarityte is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Brightsphere Investment and Polarityte

The main advantage of trading using opposite Brightsphere Investment and Polarityte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brightsphere Investment position performs unexpectedly, Polarityte 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 Polarityte will offset losses from the drop in Polarityte's long position.

The idea behind Brightsphere Investment Group and Polarityte 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.