Correlation Between BrightView Holdings and Samfine Creation

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

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

Diversification Opportunities for BrightView Holdings and Samfine Creation

0.58

Correlation Coefficient

BrightView Holdings  Samfine Creation

Very weak diversification

The 3 months correlation between BrightView and Samfine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding BrightView Holdings and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings 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 Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of BrightView Holdings i.e., BrightView Holdings and Samfine Creation go up and down completely randomly.

Pair Corralation between BrightView Holdings and Samfine Creation

Allowing for the 90-day total investment horizon BrightView Holdings is expected to generate 0.15 times more return on investment than Samfine Creation. However, BrightView Holdings is 6.89 times less risky than Samfine Creation. It trades about 0.07 of its potential returns per unit of risk. Samfine Creation Holdings is currently generating about 0.01 per unit of risk. If you would invest  791.00  in BrightView Holdings on November 28, 2024 and sell it today you would earn a total of  556.00  from holding BrightView Holdings or generate 70.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	23.27%
Values	Daily Returns

BrightView Holdings  vs.  Samfine Creation Holdings

BrightView Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days BrightView Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in March 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Samfine Creation Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samfine Creation Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with BrightView Holdings and Samfine Creation

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

The idea behind BrightView Holdings and Samfine Creation Holdings 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 CEOs Directory module to screen CEOs from public companies around the world.