Correlation Between Scandinavian Tobacco and Cboe UK
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By analyzing existing cross correlation between Scandinavian Tobacco Group and Cboe UK Consumer, you can compare the effects of market volatilities on Scandinavian Tobacco and Cboe UK 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 Scandinavian Tobacco with a short position of Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and Cboe UK.
Diversification Opportunities for Scandinavian Tobacco and Cboe UK
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scandinavian and Cboe is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and Cboe UK go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and Cboe UK
Assuming the 90 days trading horizon Scandinavian Tobacco Group is expected to generate 0.72 times more return on investment than Cboe UK. However, Scandinavian Tobacco Group is 1.4 times less risky than Cboe UK. It trades about 0.27 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about 0.02 per unit of risk. If you would invest 10,238 in Scandinavian Tobacco Group on November 27, 2024 and sell it today you would earn a total of 472.00 from holding Scandinavian Tobacco Group or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. Cboe UK Consumer
Performance |
| Timeline |
Scandinavian Tobacco and Cboe UK Volatility Contrast
Predicted Return Density |
| Returns |
Scandinavian Tobacco Group
Pair trading matchups for Scandinavian Tobacco
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with Scandinavian Tobacco and Cboe UK
The main advantage of trading using opposite Scandinavian Tobacco and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.| Scandinavian Tobacco vs. Fortune Brands Home | Scandinavian Tobacco vs. Synthomer plc | Scandinavian Tobacco vs. Aptitude Software Group | Scandinavian Tobacco vs. Cembra Money Bank |
| Cboe UK vs. International Biotechnology Trust | Cboe UK vs. Clean Power Hydrogen | Cboe UK vs. Ashtead Technology Holdings | Cboe UK vs. Aptitude Software Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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