Correlation Between BrightView Holdings and Concentrix

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

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

Diversification Opportunities for BrightView Holdings and Concentrix

-0.4

Correlation Coefficient

BrightView Holdings  Concentrix

Very good diversification

The 3 months correlation between BrightView and Concentrix is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BrightView Holdings and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and BrightView 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 BrightView Holdings are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of BrightView Holdings i.e., BrightView Holdings and Concentrix go up and down completely randomly.

Pair Corralation between BrightView Holdings and Concentrix

Allowing for the 90-day total investment horizon BrightView Holdings is expected to generate 1.05 times more return on investment than Concentrix. However, BrightView Holdings is 1.05 times more volatile than Concentrix. It trades about 0.07 of its potential returns per unit of risk. Concentrix is currently generating about -0.08 per unit of risk. If you would invest  739.00  in BrightView Holdings on September 25, 2024 and sell it today you would earn a total of  852.00  from holding BrightView Holdings or generate 115.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BrightView Holdings  vs.  Concentrix

BrightView Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BrightView Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, BrightView Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Concentrix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concentrix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with BrightView Holdings and Concentrix

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

The idea behind BrightView Holdings and Concentrix 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.