Correlation Between SOGECLAIR and SCANSOURCE (SC3SG)
Can any of the company-specific risk be diversified away by investing in both SOGECLAIR and SCANSOURCE (SC3SG) 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 SOGECLAIR and SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOGECLAIR SA INH and SCANSOURCE, you can compare the effects of market volatilities on SOGECLAIR and SCANSOURCE (SC3SG) 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 SOGECLAIR with a short position of SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of SOGECLAIR and SCANSOURCE (SC3SG).
Diversification Opportunities for SOGECLAIR and SCANSOURCE (SC3SG)
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOGECLAIR and SCANSOURCE is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) and SOGECLAIR 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 SOGECLAIR SA INH are associated (or correlated) with SCANSOURCE (SC3SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE (SC3SG) has no effect on the direction of SOGECLAIR i.e., SOGECLAIR and SCANSOURCE (SC3SG) go up and down completely randomly.
Pair Corralation between SOGECLAIR and SCANSOURCE (SC3SG)
Assuming the 90 days horizon SOGECLAIR SA INH is expected to generate 1.27 times more return on investment than SCANSOURCE (SC3SG). However, SOGECLAIR is 1.27 times more volatile than SCANSOURCE. It trades about 0.08 of its potential returns per unit of risk. SCANSOURCE is currently generating about 0.05 per unit of risk. If you would invest 1,675 in SOGECLAIR SA INH on October 14, 2024 and sell it today you would earn a total of 225.00 from holding SOGECLAIR SA INH or generate 13.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOGECLAIR SA INH vs. SCANSOURCE
Performance |
| Timeline |
| SOGECLAIR SA INH |
| SCANSOURCE (SC3SG) |
SOGECLAIR and SCANSOURCE (SC3SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOGECLAIR and SCANSOURCE (SC3SG)
The main advantage of trading using opposite SOGECLAIR and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR position performs unexpectedly, SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG) will offset losses from the drop in SCANSOURCE (SC3SG)'s long position.| SOGECLAIR vs. SCANSOURCE | SOGECLAIR vs. Teradata Corp | SOGECLAIR vs. CanSino Biologics | SOGECLAIR vs. SILVER BULLET DATA |
| SCANSOURCE (SC3SG) vs. WESANA HEALTH HOLD | SCANSOURCE (SC3SG) vs. STORE ELECTRONIC | SCANSOURCE (SC3SG) vs. KIMBALL ELECTRONICS | SCANSOURCE (SC3SG) vs. CARDINAL HEALTH |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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