Correlation Between Jinxin Technology and Bright Scholar

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

By analyzing existing cross correlation between Jinxin Technology Holding and Bright Scholar Education, you can compare the effects of market volatilities on Jinxin Technology 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 Jinxin Technology with a short position of Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxin Technology and Bright Scholar.

Diversification Opportunities for Jinxin Technology and Bright Scholar

-0.77

Correlation Coefficient

Jinxin Technology  Bright Scholar

Pay attention - limited upside

The 3 months correlation between Jinxin and Bright is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jinxin Technology Holding 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 Jinxin Technology 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 Jinxin Technology Holding 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 Jinxin Technology i.e., Jinxin Technology and Bright Scholar go up and down completely randomly.

Pair Corralation between Jinxin Technology and Bright Scholar

Given the investment horizon of 90 days Jinxin Technology Holding is expected to under-perform the Bright Scholar. In addition to that, Jinxin Technology is 2.35 times more volatile than Bright Scholar Education. It trades about -0.13 of its total potential returns per unit of risk. Bright Scholar Education is currently generating about 0.05 per unit of volatility. If you would invest  159.00  in Bright Scholar Education on May 4, 2025 and sell it today you would earn a total of  14.00  from holding Bright Scholar Education or generate 8.81% return on investment over 90 days.

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

Jinxin Technology Holding  vs.  Bright Scholar Education

Jinxin Technology Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jinxin Technology Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Bright Scholar Education

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bright Scholar Education are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Bright Scholar unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jinxin Technology and Bright Scholar

The main advantage of trading using opposite Jinxin Technology and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxin Technology 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.

The idea behind Jinxin Technology Holding and Bright Scholar Education 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.