Correlation Between Cboe UK and Scottish American
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By analyzing existing cross correlation between Cboe UK Consumer and Scottish American Investment, you can compare the effects of market volatilities on Cboe UK and Scottish American 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 Cboe UK with a short position of Scottish American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Scottish American.
Diversification Opportunities for Cboe UK and Scottish American
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cboe and Scottish is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Scottish American Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottish American and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Scottish American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottish American has no effect on the direction of Cboe UK i.e., Cboe UK and Scottish American go up and down completely randomly.
Pair Corralation between Cboe UK and Scottish American
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 1.0 times more return on investment than Scottish American. However, Cboe UK is 1.0 times more volatile than Scottish American Investment. It trades about 0.08 of its potential returns per unit of risk. Scottish American Investment is currently generating about 0.02 per unit of risk. If you would invest 2,218,338 in Cboe UK Consumer on September 1, 2024 and sell it today you would earn a total of 1,041,964 from holding Cboe UK Consumer or generate 46.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.62% |
| Values | Daily Returns |
Cboe UK Consumer vs. Scottish American Investment
Performance |
| Timeline |
Cboe UK and Scottish American Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Scottish American Investment
Pair trading matchups for Scottish American
Pair Trading with Cboe UK and Scottish American
The main advantage of trading using opposite Cboe UK and Scottish American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Scottish American 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 Scottish American will offset losses from the drop in Scottish American's long position.| Cboe UK vs. Panther Metals PLC | Cboe UK vs. Lundin Mining Corp | Cboe UK vs. Gamma Communications PLC | Cboe UK vs. GoldMining |
| Scottish American vs. Toyota Motor Corp | Scottish American vs. SoftBank Group Corp | Scottish American vs. OTP Bank Nyrt | Scottish American vs. Las Vegas Sands |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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