Correlation Between SCANDMEDICAL SOLDK and Boise Cascade
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK and Boise Cascade 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 SCANDMEDICAL SOLDK and Boise Cascade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Boise Cascade, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK and Boise Cascade 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 SCANDMEDICAL SOLDK with a short position of Boise Cascade. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK and Boise Cascade.
Diversification Opportunities for SCANDMEDICAL SOLDK and Boise Cascade
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANDMEDICAL and Boise is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Boise Cascade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boise Cascade and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with Boise Cascade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boise Cascade has no effect on the direction of SCANDMEDICAL SOLDK i.e., SCANDMEDICAL SOLDK and Boise Cascade go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK and Boise Cascade
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to under-perform the Boise Cascade. But the stock apears to be less risky and, when comparing its historical volatility, SCANDMEDICAL SOLDK 040 is 1.08 times less risky than Boise Cascade. The stock trades about -0.01 of its potential returns per unit of risk. The Boise Cascade is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11,063 in Boise Cascade on September 15, 2024 and sell it today you would earn a total of 2,382 from holding Boise Cascade or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Boise Cascade
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Boise Cascade |
SCANDMEDICAL SOLDK and Boise Cascade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK and Boise Cascade
The main advantage of trading using opposite SCANDMEDICAL SOLDK and Boise Cascade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK position performs unexpectedly, Boise Cascade 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 Boise Cascade will offset losses from the drop in Boise Cascade's long position.| SCANDMEDICAL SOLDK vs. China Resources Beer | SCANDMEDICAL SOLDK vs. Molson Coors Beverage | SCANDMEDICAL SOLDK vs. NIPPON STEEL SPADR | SCANDMEDICAL SOLDK vs. ALERION CLEANPOWER |
| Boise Cascade vs. Aluminum of | Boise Cascade vs. SLR Investment Corp | Boise Cascade vs. New Residential Investment | Boise Cascade vs. HK Electric Investments |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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