Correlation Between COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG)
Can any of the company-specific risk be diversified away by investing in both COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COREBRIDGE FINANCIAL INC and SCANSOURCE, you can compare the effects of market volatilities on COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL with a short position of SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG).
Diversification Opportunities for COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG)
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COREBRIDGE and SCANSOURCE is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding COREBRIDGE FINANCIAL INC and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL INC 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 COREBRIDGE FINANCIAL i.e., COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG) go up and down completely randomly.
Pair Corralation between COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG)
Assuming the 90 days horizon COREBRIDGE FINANCIAL INC is expected to generate 1.03 times more return on investment than SCANSOURCE (SC3SG). However, COREBRIDGE FINANCIAL is 1.03 times more volatile than SCANSOURCE. It trades about 0.07 of its potential returns per unit of risk. SCANSOURCE is currently generating about 0.05 per unit of risk. If you would invest 1,628 in COREBRIDGE FINANCIAL INC on October 13, 2024 and sell it today you would earn a total of 1,392 from holding COREBRIDGE FINANCIAL INC or generate 85.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
COREBRIDGE FINANCIAL INC vs. SCANSOURCE
Performance |
| Timeline |
| COREBRIDGE FINANCIAL INC |
| SCANSOURCE (SC3SG) |
COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG)
The main advantage of trading using opposite COREBRIDGE FINANCIAL and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COREBRIDGE FINANCIAL 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.| COREBRIDGE FINANCIAL vs. Erste Group Bank | COREBRIDGE FINANCIAL vs. Cincinnati Financial Corp | COREBRIDGE FINANCIAL vs. Virtu Financial | COREBRIDGE FINANCIAL vs. United Insurance Holdings |
| SCANSOURCE (SC3SG) vs. CDN IMPERIAL BANK | SCANSOURCE (SC3SG) vs. Erste Group Bank | SCANSOURCE (SC3SG) vs. COREBRIDGE FINANCIAL INC | SCANSOURCE (SC3SG) vs. United Insurance Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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