Correlation Between ScanSource and DATA MODUL
Can any of the company-specific risk be diversified away by investing in both ScanSource and DATA MODUL 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 DATA MODUL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and DATA MODUL , you can compare the effects of market volatilities on ScanSource and DATA MODUL 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 DATA MODUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and DATA MODUL.
Diversification Opportunities for ScanSource and DATA MODUL
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ScanSource and DATA is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and DATA MODUL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATA MODUL 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 DATA MODUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATA MODUL has no effect on the direction of ScanSource i.e., ScanSource and DATA MODUL go up and down completely randomly.
Pair Corralation between ScanSource and DATA MODUL
Assuming the 90 days horizon ScanSource is expected to generate 0.91 times more return on investment than DATA MODUL. However, ScanSource is 1.1 times less risky than DATA MODUL. It trades about 0.15 of its potential returns per unit of risk. DATA MODUL is currently generating about -0.11 per unit of risk. If you would invest 4,560 in ScanSource on November 4, 2024 and sell it today you would earn a total of 220.00 from holding ScanSource or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ScanSource vs. DATA MODUL
Performance |
| Timeline |
| ScanSource |
| DATA MODUL |
ScanSource and DATA MODUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and DATA MODUL
The main advantage of trading using opposite ScanSource and DATA MODUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, DATA MODUL 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 DATA MODUL will offset losses from the drop in DATA MODUL's long position.| ScanSource vs. Endeavour Mining PLC | ScanSource vs. MAGNUM MINING EXP | ScanSource vs. AIR LIQUIDE ADR | ScanSource vs. Harmony Gold Mining |
| DATA MODUL vs. DICKER DATA LTD | DATA MODUL vs. WESANA HEALTH HOLD | DATA MODUL vs. Molina Healthcare | DATA MODUL vs. US Physical Therapy |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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