Correlation Between SCANSOURCE (SC3SG) and PT Gajah
Can any of the company-specific risk be diversified away by investing in both SCANSOURCE (SC3SG) and PT Gajah 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 (SC3SG) and PT Gajah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANSOURCE and PT Gajah Tunggal, you can compare the effects of market volatilities on SCANSOURCE (SC3SG) and PT Gajah 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 (SC3SG) with a short position of PT Gajah. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANSOURCE (SC3SG) and PT Gajah.
Diversification Opportunities for SCANSOURCE (SC3SG) and PT Gajah
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCANSOURCE and GH8 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SCANSOURCE and PT Gajah Tunggal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gajah Tunggal and SCANSOURCE (SC3SG) 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 PT Gajah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gajah Tunggal has no effect on the direction of SCANSOURCE (SC3SG) i.e., SCANSOURCE (SC3SG) and PT Gajah go up and down completely randomly.
Pair Corralation between SCANSOURCE (SC3SG) and PT Gajah
Assuming the 90 days trading horizon SCANSOURCE (SC3SG) is expected to generate 2.02 times less return on investment than PT Gajah. But when comparing it to its historical volatility, SCANSOURCE is 3.16 times less risky than PT Gajah. It trades about 0.05 of its potential returns per unit of risk. PT Gajah Tunggal is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5.28 in PT Gajah Tunggal on September 1, 2024 and sell it today you would lose (0.03) from holding PT Gajah Tunggal or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
SCANSOURCE vs. PT Gajah Tunggal
Performance |
| Timeline |
| SCANSOURCE (SC3SG) |
| PT Gajah Tunggal |
SCANSOURCE (SC3SG) and PT Gajah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANSOURCE (SC3SG) and PT Gajah
The main advantage of trading using opposite SCANSOURCE (SC3SG) and PT Gajah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANSOURCE (SC3SG) position performs unexpectedly, PT Gajah 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 PT Gajah will offset losses from the drop in PT Gajah's long position.| SCANSOURCE (SC3SG) vs. SIVERS SEMICONDUCTORS AB | SCANSOURCE (SC3SG) vs. Darden Restaurants | SCANSOURCE (SC3SG) vs. Reliance Steel Aluminum | SCANSOURCE (SC3SG) vs. Q2M Managementberatung AG |
| PT Gajah vs. SCANSOURCE | PT Gajah vs. RETAIL FOOD GROUP | PT Gajah vs. AUTO TRADER ADR | PT Gajah vs. GungHo Online Entertainment |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |