Correlation Between Puma Biotechnology and ScanSource
Can any of the company-specific risk be diversified away by investing in both Puma Biotechnology and ScanSource 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 Puma Biotechnology and ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Biotechnology and ScanSource, you can compare the effects of market volatilities on Puma Biotechnology 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 Puma Biotechnology with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Biotechnology and ScanSource.
Diversification Opportunities for Puma Biotechnology and ScanSource
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and ScanSource is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Puma Biotechnology and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Puma Biotechnology 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 Puma Biotechnology 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 Puma Biotechnology i.e., Puma Biotechnology and ScanSource go up and down completely randomly.
Pair Corralation between Puma Biotechnology and ScanSource
Given the investment horizon of 90 days Puma Biotechnology is expected to generate 1.36 times more return on investment than ScanSource. However, Puma Biotechnology is 1.36 times more volatile than ScanSource. It trades about 0.08 of its potential returns per unit of risk. ScanSource is currently generating about -0.05 per unit of risk. If you would invest 487.00 in Puma Biotechnology on December 2, 2025 and sell it today you would earn a total of 82.00 from holding Puma Biotechnology or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Biotechnology vs. ScanSource
Performance |
| Timeline |
| Puma Biotechnology |
| ScanSource |
Puma Biotechnology and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Biotechnology and ScanSource
The main advantage of trading using opposite Puma Biotechnology and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Biotechnology 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.| Puma Biotechnology vs. Eledon Pharmaceuticals | Puma Biotechnology vs. Abeona Therapeutics | Puma Biotechnology vs. Voyager Therapeutics | Puma Biotechnology vs. Atea Pharmaceuticals |
| ScanSource vs. NETGEAR | ScanSource vs. Magic Software Enterprises | ScanSource vs. Stratasys | ScanSource vs. Alpha and Omega |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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