Correlation Between ScanSource and AMADEUS IT
Can any of the company-specific risk be diversified away by investing in both ScanSource and AMADEUS IT 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 ScanSource and AMADEUS IT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and AMADEUS IT GRP, you can compare the effects of market volatilities on ScanSource and AMADEUS IT 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 ScanSource with a short position of AMADEUS IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and AMADEUS IT.
Diversification Opportunities for ScanSource and AMADEUS IT
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ScanSource and AMADEUS is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and AMADEUS IT GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMADEUS IT GRP and ScanSource 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 ScanSource are associated (or correlated) with AMADEUS IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMADEUS IT GRP has no effect on the direction of ScanSource i.e., ScanSource and AMADEUS IT go up and down completely randomly.
Pair Corralation between ScanSource and AMADEUS IT
Assuming the 90 days horizon ScanSource is expected to generate 3.77 times more return on investment than AMADEUS IT. However, ScanSource is 3.77 times more volatile than AMADEUS IT GRP. It trades about 0.05 of its potential returns per unit of risk. AMADEUS IT GRP is currently generating about 0.17 per unit of risk. If you would invest 4,640 in ScanSource on November 5, 2024 and sell it today you would earn a total of 140.00 from holding ScanSource or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ScanSource vs. AMADEUS IT GRP
Performance |
| Timeline |
| ScanSource |
| AMADEUS IT GRP |
ScanSource and AMADEUS IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and AMADEUS IT
The main advantage of trading using opposite ScanSource and AMADEUS IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, AMADEUS IT 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 AMADEUS IT will offset losses from the drop in AMADEUS IT's long position.| ScanSource vs. Stag Industrial | ScanSource vs. VARIOUS EATERIES LS | ScanSource vs. Coffee Holding Co | ScanSource vs. DATAGROUP SE |
| AMADEUS IT vs. Goodyear Tire Rubber | AMADEUS IT vs. Materialise NV | AMADEUS IT vs. Safety Insurance Group | AMADEUS IT vs. Heidelberg Materials AG |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |