Correlation Between Scottish Mortgage and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both Scottish Mortgage and Aurubis AG 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 Scottish Mortgage and Aurubis AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scottish Mortgage Investment and Aurubis AG, you can compare the effects of market volatilities on Scottish Mortgage and Aurubis AG 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 Scottish Mortgage with a short position of Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scottish Mortgage and Aurubis AG.
Diversification Opportunities for Scottish Mortgage and Aurubis AG
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scottish and Aurubis is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Scottish Mortgage Investment and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG and Scottish Mortgage 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 Scottish Mortgage Investment are associated (or correlated) with Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of Scottish Mortgage i.e., Scottish Mortgage and Aurubis AG go up and down completely randomly.
Pair Corralation between Scottish Mortgage and Aurubis AG
Assuming the 90 days trading horizon Scottish Mortgage Investment is expected to generate 1.02 times more return on investment than Aurubis AG. However, Scottish Mortgage is 1.02 times more volatile than Aurubis AG. It trades about 0.22 of its potential returns per unit of risk. Aurubis AG is currently generating about -0.01 per unit of risk. If you would invest 1,158 in Scottish Mortgage Investment on November 3, 2024 and sell it today you would earn a total of 109.00 from holding Scottish Mortgage Investment or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scottish Mortgage Investment vs. Aurubis AG
Performance |
| Timeline |
| Scottish Mortgage |
| Aurubis AG |
Scottish Mortgage and Aurubis AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scottish Mortgage and Aurubis AG
The main advantage of trading using opposite Scottish Mortgage and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scottish Mortgage position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.| Scottish Mortgage vs. SIVERS SEMICONDUCTORS AB | Scottish Mortgage vs. NorAm Drilling AS | Scottish Mortgage vs. Volkswagen AG | Scottish Mortgage vs. Darden Restaurants |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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