Correlation Between SCANSOURCE and Logista
Can any of the company-specific risk be diversified away by investing in both SCANSOURCE and Logista 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 Logista into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANSOURCE and Logista, you can compare the effects of market volatilities on SCANSOURCE and Logista 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 Logista. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANSOURCE and Logista.
Diversification Opportunities for SCANSOURCE and Logista
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SCANSOURCE and Logista is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SCANSOURCE and Logista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logista 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 Logista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logista has no effect on the direction of SCANSOURCE i.e., SCANSOURCE and Logista go up and down completely randomly.
Pair Corralation between SCANSOURCE and Logista
Assuming the 90 days trading horizon SCANSOURCE is expected to generate 2.31 times more return on investment than Logista. However, SCANSOURCE is 2.31 times more volatile than Logista. It trades about 0.14 of its potential returns per unit of risk. Logista is currently generating about 0.06 per unit of risk. If you would invest 4,780 in SCANSOURCE on September 13, 2024 and sell it today you would earn a total of 270.00 from holding SCANSOURCE or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SCANSOURCE vs. Logista
Performance |
| Timeline |
| SCANSOURCE |
| Logista |
SCANSOURCE and Logista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANSOURCE and Logista
The main advantage of trading using opposite SCANSOURCE and Logista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANSOURCE position performs unexpectedly, Logista 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 Logista will offset losses from the drop in Logista's long position.The idea behind SCANSOURCE and Logista pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Logista vs. Retail Estates NV | Logista vs. QURATE RETAIL INC | Logista vs. AGNC INVESTMENT | Logista vs. SPARTAN STORES |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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