Correlation Between SCOTT TECHNOLOGY and Thermo Fisher
Can any of the company-specific risk be diversified away by investing in both SCOTT TECHNOLOGY and Thermo Fisher 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 SCOTT TECHNOLOGY and Thermo Fisher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOTT TECHNOLOGY and Thermo Fisher Scientific, you can compare the effects of market volatilities on SCOTT TECHNOLOGY and Thermo Fisher 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 SCOTT TECHNOLOGY with a short position of Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOTT TECHNOLOGY and Thermo Fisher.
Diversification Opportunities for SCOTT TECHNOLOGY and Thermo Fisher
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCOTT and Thermo is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SCOTT TECHNOLOGY and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific and SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY are associated (or correlated) with Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of SCOTT TECHNOLOGY i.e., SCOTT TECHNOLOGY and Thermo Fisher go up and down completely randomly.
Pair Corralation between SCOTT TECHNOLOGY and Thermo Fisher
Assuming the 90 days trading horizon SCOTT TECHNOLOGY is expected to generate 2.05 times more return on investment than Thermo Fisher. However, SCOTT TECHNOLOGY is 2.05 times more volatile than Thermo Fisher Scientific. It trades about 0.01 of its potential returns per unit of risk. Thermo Fisher Scientific is currently generating about 0.0 per unit of risk. If you would invest 143.00 in SCOTT TECHNOLOGY on September 4, 2024 and sell it today you would lose (12.00) from holding SCOTT TECHNOLOGY or give up 8.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SCOTT TECHNOLOGY vs. Thermo Fisher Scientific
Performance |
| Timeline |
| SCOTT TECHNOLOGY |
| Thermo Fisher Scientific |
SCOTT TECHNOLOGY and Thermo Fisher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOTT TECHNOLOGY and Thermo Fisher
The main advantage of trading using opposite SCOTT TECHNOLOGY and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOTT TECHNOLOGY position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher's long position.| SCOTT TECHNOLOGY vs. TOTAL GABON | SCOTT TECHNOLOGY vs. Walgreens Boots Alliance | SCOTT TECHNOLOGY vs. Peak Resources Limited |
| Thermo Fisher vs. Sunstone Hotel Investors | Thermo Fisher vs. INTERCONT HOTELS | Thermo Fisher vs. GameStop Corp | Thermo Fisher vs. DALATA HOTEL |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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