Correlation Between SCANSOURCE and GOODTECH ASA
Can any of the company-specific risk be diversified away by investing in both SCANSOURCE and GOODTECH ASA 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 GOODTECH ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANSOURCE and GOODTECH ASA A, you can compare the effects of market volatilities on SCANSOURCE and GOODTECH ASA 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 GOODTECH ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANSOURCE and GOODTECH ASA.
Diversification Opportunities for SCANSOURCE and GOODTECH ASA
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANSOURCE and GOODTECH is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SCANSOURCE and GOODTECH ASA A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOODTECH ASA A 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 GOODTECH ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOODTECH ASA A has no effect on the direction of SCANSOURCE i.e., SCANSOURCE and GOODTECH ASA go up and down completely randomly.
Pair Corralation between SCANSOURCE and GOODTECH ASA
Assuming the 90 days trading horizon SCANSOURCE is expected to generate 1.31 times more return on investment than GOODTECH ASA. However, SCANSOURCE is 1.31 times more volatile than GOODTECH ASA A. It trades about 0.11 of its potential returns per unit of risk. GOODTECH ASA A is currently generating about -0.25 per unit of risk. If you would invest 4,260 in SCANSOURCE on August 30, 2024 and sell it today you would earn a total of 520.00 from holding SCANSOURCE or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANSOURCE vs. GOODTECH ASA A
Performance |
| Timeline |
| SCANSOURCE |
| GOODTECH ASA A |
SCANSOURCE and GOODTECH ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANSOURCE and GOODTECH ASA
The main advantage of trading using opposite SCANSOURCE and GOODTECH ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANSOURCE position performs unexpectedly, GOODTECH ASA 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 GOODTECH ASA will offset losses from the drop in GOODTECH ASA's long position.| SCANSOURCE vs. Apple Inc | SCANSOURCE vs. Apple Inc | SCANSOURCE vs. Superior Plus Corp | SCANSOURCE vs. SIVERS SEMICONDUCTORS AB |
| GOODTECH ASA vs. RETAIL FOOD GROUP | GOODTECH ASA vs. FLOW TRADERS LTD | GOODTECH ASA vs. AOYAMA TRADING | GOODTECH ASA vs. SCANSOURCE |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |