Correlation Between SCANDION ONC and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both SCANDION ONC and Selective Insurance 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 SCANDION ONC and Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDION ONC DK 0735 and Selective Insurance Group, you can compare the effects of market volatilities on SCANDION ONC and Selective Insurance 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 SCANDION ONC with a short position of Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDION ONC and Selective Insurance.
Diversification Opportunities for SCANDION ONC and Selective Insurance
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCANDION and Selective is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding SCANDION ONC DK 0735 and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance and SCANDION ONC 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 SCANDION ONC DK 0735 are associated (or correlated) with Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of SCANDION ONC i.e., SCANDION ONC and Selective Insurance go up and down completely randomly.
Pair Corralation between SCANDION ONC and Selective Insurance
Assuming the 90 days horizon SCANDION ONC DK 0735 is expected to under-perform the Selective Insurance. In addition to that, SCANDION ONC is 2.64 times more volatile than Selective Insurance Group. It trades about -0.39 of its total potential returns per unit of risk. Selective Insurance Group is currently generating about 0.21 per unit of volatility. If you would invest 8,416 in Selective Insurance Group on August 30, 2024 and sell it today you would earn a total of 884.00 from holding Selective Insurance Group or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SCANDION ONC DK 0735 vs. Selective Insurance Group
Performance |
| Timeline |
| SCANDION ONC DK |
| Selective Insurance |
SCANDION ONC and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDION ONC and Selective Insurance
The main advantage of trading using opposite SCANDION ONC and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDION ONC position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| SCANDION ONC vs. AGRICULTBK HADR25 YC | SCANDION ONC vs. AGF Management Limited | SCANDION ONC vs. Sims Metal Management | SCANDION ONC vs. Corporate Travel Management |
| Selective Insurance vs. DICKS Sporting Goods | Selective Insurance vs. Singapore Telecommunications Limited | Selective Insurance vs. NTG Nordic Transport | Selective Insurance vs. SPORTING |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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