Correlation Between Anglo American and ScanSource
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anglo American plc and ScanSource, you can compare the effects of market volatilities on Anglo American and ScanSource 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 Anglo American with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and ScanSource.
Diversification Opportunities for Anglo American and ScanSource
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anglo and ScanSource is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American plc and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Anglo American 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 Anglo American plc are associated (or correlated) with ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Anglo American i.e., Anglo American and ScanSource go up and down completely randomly.
Pair Corralation between Anglo American and ScanSource
Assuming the 90 days trading horizon Anglo American is expected to generate 2.7 times less return on investment than ScanSource. But when comparing it to its historical volatility, Anglo American plc is 1.3 times less risky than ScanSource. It trades about 0.13 of its potential returns per unit of risk. ScanSource is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,980 in ScanSource on September 3, 2024 and sell it today you would earn a total of 740.00 from holding ScanSource or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo American plc vs. ScanSource
Performance |
| Timeline |
| Anglo American plc |
| ScanSource |
Anglo American and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo American and ScanSource
The main advantage of trading using opposite Anglo American and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, ScanSource 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 will offset losses from the drop in ScanSource's long position.| Anglo American vs. Summit Hotel Properties | Anglo American vs. Apollo Investment Corp | Anglo American vs. Choice Hotels International | Anglo American vs. New Residential Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |