Correlation Between OFFICE DEPOT and Scandinavian Tobacco
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT 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 OFFICE DEPOT and Scandinavian Tobacco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Scandinavian Tobacco Group, you can compare the effects of market volatilities on OFFICE DEPOT 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 OFFICE DEPOT with a short position of Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Scandinavian Tobacco.
Diversification Opportunities for OFFICE DEPOT and Scandinavian Tobacco
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Scandinavian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT i.e., OFFICE DEPOT and Scandinavian Tobacco go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Scandinavian Tobacco
If you would invest 750.00 in Scandinavian Tobacco Group on September 12, 2024 and sell it today you would earn a total of 558.00 from holding Scandinavian Tobacco Group or generate 74.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Scandinavian Tobacco Group
Performance |
| Timeline |
| OFFICE DEPOT |
| Scandinavian Tobacco |
OFFICE DEPOT and Scandinavian Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Scandinavian Tobacco
The main advantage of trading using opposite OFFICE DEPOT and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT 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.| OFFICE DEPOT vs. GRIFFIN MINING LTD | OFFICE DEPOT vs. Dairy Farm International | OFFICE DEPOT vs. GALENA MINING LTD | OFFICE DEPOT vs. Penta Ocean Construction Co |
| Scandinavian Tobacco vs. Daido Steel Co | Scandinavian Tobacco vs. OFFICE DEPOT | Scandinavian Tobacco vs. MAVEN WIRELESS SWEDEN | Scandinavian Tobacco vs. MITSUBISHI STEEL MFG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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