Correlation Between JLF INVESTMENT and SCANSOURCE (SC3SG)
Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT 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 JLF INVESTMENT and SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLF INVESTMENT and SCANSOURCE, you can compare the effects of market volatilities on JLF INVESTMENT 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 JLF INVESTMENT with a short position of SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and SCANSOURCE (SC3SG).
Diversification Opportunities for JLF INVESTMENT and SCANSOURCE (SC3SG)
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLF and SCANSOURCE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT i.e., JLF INVESTMENT and SCANSOURCE (SC3SG) go up and down completely randomly.
Pair Corralation between JLF INVESTMENT and SCANSOURCE (SC3SG)
If you would invest 1.00 in JLF INVESTMENT on October 11, 2024 and sell it today you would earn a total of 0.00 from holding JLF INVESTMENT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLF INVESTMENT vs. SCANSOURCE
Performance |
| Timeline |
| JLF INVESTMENT |
| SCANSOURCE (SC3SG) |
JLF INVESTMENT and SCANSOURCE (SC3SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLF INVESTMENT and SCANSOURCE (SC3SG)
The main advantage of trading using opposite JLF INVESTMENT and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT 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.| JLF INVESTMENT vs. Apple Inc | JLF INVESTMENT vs. Apple Inc | JLF INVESTMENT vs. Apple Inc | JLF INVESTMENT vs. Apple Inc |
| SCANSOURCE (SC3SG) vs. JLF INVESTMENT | SCANSOURCE (SC3SG) vs. Burlington Stores | SCANSOURCE (SC3SG) vs. PICKN PAY STORES | SCANSOURCE (SC3SG) vs. RETAIL FOOD 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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