Correlation Between Aston Martin and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Aston Martin and SCOR PK 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 Aston Martin and SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Martin Lagonda and SCOR PK, you can compare the effects of market volatilities on Aston Martin and SCOR PK 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 Aston Martin with a short position of SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Martin and SCOR PK.
Diversification Opportunities for Aston Martin and SCOR PK
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aston and SCOR is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aston Martin Lagonda and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK and Aston Martin 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 Aston Martin Lagonda are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Aston Martin i.e., Aston Martin and SCOR PK go up and down completely randomly.
Pair Corralation between Aston Martin and SCOR PK
Assuming the 90 days horizon Aston Martin Lagonda is expected to generate 1.25 times more return on investment than SCOR PK. However, Aston Martin is 1.25 times more volatile than SCOR PK. It trades about 0.01 of its potential returns per unit of risk. SCOR PK is currently generating about 0.01 per unit of risk. If you would invest 129.00 in Aston Martin Lagonda on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Aston Martin Lagonda or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aston Martin Lagonda vs. SCOR PK
Performance |
| Timeline |
| Aston Martin Lagonda |
| SCOR PK |
Aston Martin and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston Martin and SCOR PK
The main advantage of trading using opposite Aston Martin and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Martin position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Aston Martin vs. Geely Automobile Holdings | Aston Martin vs. Guangzhou Automobile Group | Aston Martin vs. Dowlais Group plc | Aston Martin vs. NFI 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |