Correlation Between ScanSource and Bankinter
Can any of the company-specific risk be diversified away by investing in both ScanSource and Bankinter 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 Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Bankinter SA, you can compare the effects of market volatilities on ScanSource and Bankinter 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 Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Bankinter.
Diversification Opportunities for ScanSource and Bankinter
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ScanSource and Bankinter is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Bankinter SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA 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 Bankinter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinter SA has no effect on the direction of ScanSource i.e., ScanSource and Bankinter go up and down completely randomly.
Pair Corralation between ScanSource and Bankinter
Assuming the 90 days horizon ScanSource is expected to generate 2.04 times more return on investment than Bankinter. However, ScanSource is 2.04 times more volatile than Bankinter SA. It trades about 0.2 of its potential returns per unit of risk. Bankinter SA is currently generating about 0.13 per unit of risk. If you would invest 4,120 in ScanSource on August 27, 2024 and sell it today you would earn a total of 560.00 from holding ScanSource or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanSource vs. Bankinter SA
Performance |
| Timeline |
| ScanSource |
| Bankinter SA |
ScanSource and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and Bankinter
The main advantage of trading using opposite ScanSource and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, Bankinter 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 Bankinter will offset losses from the drop in Bankinter's long position.| ScanSource vs. Cars Inc | ScanSource vs. Goodyear Tire Rubber | ScanSource vs. SANOK RUBBER ZY | ScanSource vs. Eagle Materials |
| Bankinter vs. Canadian Utilities Limited | Bankinter vs. Clean Energy Fuels | Bankinter vs. Major Drilling Group | Bankinter vs. Ultra Clean Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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