Correlation Between SCANSOURCE and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both SCANSOURCE and CHINA TONTINE 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 CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANSOURCE and CHINA TONTINE WINES, you can compare the effects of market volatilities on SCANSOURCE and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANSOURCE and CHINA TONTINE.
Diversification Opportunities for SCANSOURCE and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCANSOURCE and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCANSOURCE and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of SCANSOURCE i.e., SCANSOURCE and CHINA TONTINE go up and down completely randomly.
Pair Corralation between SCANSOURCE and CHINA TONTINE
If you would invest 4,520 in SCANSOURCE on October 29, 2024 and sell it today you would earn a total of 260.00 from holding SCANSOURCE or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
SCANSOURCE vs. CHINA TONTINE WINES
Performance |
| Timeline |
| SCANSOURCE |
| CHINA TONTINE WINES |
SCANSOURCE and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANSOURCE and CHINA TONTINE
The main advantage of trading using opposite SCANSOURCE and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANSOURCE position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.The idea behind SCANSOURCE and CHINA TONTINE WINES 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.| CHINA TONTINE vs. Goodyear Tire Rubber | CHINA TONTINE vs. Automatic Data Processing | CHINA TONTINE vs. NEWELL RUBBERMAID | CHINA TONTINE 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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