Correlation Between Argosy Property and Scandinavian Tobacco
Can any of the company-specific risk be diversified away by investing in both Argosy Property and Scandinavian Tobacco 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 Argosy Property and Scandinavian Tobacco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argosy Property Limited and Scandinavian Tobacco Group, you can compare the effects of market volatilities on Argosy Property and Scandinavian Tobacco 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 Argosy Property with a short position of Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argosy Property and Scandinavian Tobacco.
Diversification Opportunities for Argosy Property and Scandinavian Tobacco
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Argosy and Scandinavian is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Argosy Property Limited and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco and Argosy Property 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 Argosy Property Limited are associated (or correlated) with Scandinavian Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Tobacco has no effect on the direction of Argosy Property i.e., Argosy Property and Scandinavian Tobacco go up and down completely randomly.
Pair Corralation between Argosy Property and Scandinavian Tobacco
Assuming the 90 days horizon Argosy Property Limited is expected to generate 0.55 times more return on investment than Scandinavian Tobacco. However, Argosy Property Limited is 1.81 times less risky than Scandinavian Tobacco. It trades about 0.21 of its potential returns per unit of risk. Scandinavian Tobacco Group is currently generating about -0.21 per unit of risk. If you would invest 67.00 in Argosy Property Limited on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Argosy Property Limited or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Argosy Property Limited vs. Scandinavian Tobacco Group
Performance |
| Timeline |
| Argosy Property |
| Scandinavian Tobacco |
Argosy Property and Scandinavian Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argosy Property and Scandinavian Tobacco
The main advantage of trading using opposite Argosy Property and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argosy Property position performs unexpectedly, Scandinavian Tobacco 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 Scandinavian Tobacco will offset losses from the drop in Scandinavian Tobacco's long position.| Argosy Property vs. Avient Corp | Argosy Property vs. Hertz Global Holdings | Argosy Property vs. Luxfer Holdings PLC | Argosy Property vs. Avis Budget Group |
| Scandinavian Tobacco vs. Universal | Scandinavian Tobacco vs. Imperial Brands PLC | Scandinavian Tobacco vs. Japan Tobacco ADR | Scandinavian Tobacco vs. Philip Morris International |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |