Correlation Between ScanSource and Apple
Can any of the company-specific risk be diversified away by investing in both ScanSource and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Apple Inc, you can compare the effects of market volatilities on ScanSource and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Apple.
Diversification Opportunities for ScanSource and Apple
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ScanSource and Apple is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of ScanSource i.e., ScanSource and Apple go up and down completely randomly.
Pair Corralation between ScanSource and Apple
Assuming the 90 days horizon ScanSource is expected to generate 1.27 times less return on investment than Apple. In addition to that, ScanSource is 1.53 times more volatile than Apple Inc. It trades about 0.03 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.05 per unit of volatility. If you would invest 14,511 in Apple Inc on January 1, 2025 and sell it today you would earn a total of 5,824 from holding Apple Inc or generate 40.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanSource vs. Apple Inc
Performance |
| Timeline |
| ScanSource |
| Apple Inc |
ScanSource and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and Apple
The main advantage of trading using opposite ScanSource and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| ScanSource vs. GREENX METALS LTD | ||
| ScanSource vs. DATANG INTL POW | ||
| ScanSource vs. STORAGEVAULT CANADA INC | ||
| ScanSource vs. East Africa Metals |
| Apple vs. United Airlines Holdings | ||
| Apple vs. KENEDIX OFFICE INV | ||
| Apple vs. Aegean Airlines SA | ||
| Apple vs. International Consolidated Airlines |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |