Correlation Between Sprinklr and BrightSpring Health

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

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

Diversification Opportunities for Sprinklr and BrightSpring Health

-0.45

Correlation Coefficient

Sprinklr  BrightSpring Health

Very good diversification

The 3 months correlation between Sprinklr and BrightSpring is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sprinklr and BrightSpring Health Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightSpring Health and Sprinklr 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 Sprinklr are associated (or correlated) with BrightSpring Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightSpring Health has no effect on the direction of Sprinklr i.e., Sprinklr and BrightSpring Health go up and down completely randomly.

Pair Corralation between Sprinklr and BrightSpring Health

Considering the 90-day investment horizon Sprinklr is expected to generate 1.04 times more return on investment than BrightSpring Health. However, Sprinklr is 1.04 times more volatile than BrightSpring Health Services,. It trades about 0.04 of its potential returns per unit of risk. BrightSpring Health Services, is currently generating about -0.01 per unit of risk. If you would invest  805.00  in Sprinklr on May 21, 2025 and sell it today you would earn a total of  32.00  from holding Sprinklr or generate 3.98% return on investment over 90 days.

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

Sprinklr  vs.  BrightSpring Health Services,

Sprinklr

Risk-Adjusted Performance

Weak

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

BrightSpring Health

Risk-Adjusted Performance

Weakest

Over the last 90 days BrightSpring Health Services, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BrightSpring Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sprinklr and BrightSpring Health

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

The idea behind Sprinklr and BrightSpring Health Services, 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.