Correlation Between SCANSOURCE (SC3SG) and NESTE OYJ
Can any of the company-specific risk be diversified away by investing in both SCANSOURCE (SC3SG) and NESTE OYJ 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 NESTE OYJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANSOURCE and NESTE OYJ UNSPADR, you can compare the effects of market volatilities on SCANSOURCE (SC3SG) and NESTE OYJ 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 NESTE OYJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANSOURCE (SC3SG) and NESTE OYJ.
Diversification Opportunities for SCANSOURCE (SC3SG) and NESTE OYJ
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANSOURCE and NESTE is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SCANSOURCE and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR 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 NESTE OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTE OYJ UNSPADR has no effect on the direction of SCANSOURCE (SC3SG) i.e., SCANSOURCE (SC3SG) and NESTE OYJ go up and down completely randomly.
Pair Corralation between SCANSOURCE (SC3SG) and NESTE OYJ
Assuming the 90 days trading horizon SCANSOURCE is expected to generate 0.84 times more return on investment than NESTE OYJ. However, SCANSOURCE is 1.19 times less risky than NESTE OYJ. It trades about 0.06 of its potential returns per unit of risk. NESTE OYJ UNSPADR is currently generating about -0.07 per unit of risk. If you would invest 2,880 in SCANSOURCE on September 3, 2024 and sell it today you would earn a total of 1,860 from holding SCANSOURCE or generate 64.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANSOURCE vs. NESTE OYJ UNSPADR
Performance |
| Timeline |
| SCANSOURCE (SC3SG) |
| NESTE OYJ UNSPADR |
SCANSOURCE (SC3SG) and NESTE OYJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANSOURCE (SC3SG) and NESTE OYJ
The main advantage of trading using opposite SCANSOURCE (SC3SG) and NESTE OYJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANSOURCE (SC3SG) position performs unexpectedly, NESTE OYJ 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 NESTE OYJ will offset losses from the drop in NESTE OYJ's long position.| SCANSOURCE (SC3SG) vs. Plastic Omnium | SCANSOURCE (SC3SG) vs. APPLIED MATERIALS | SCANSOURCE (SC3SG) vs. VULCAN MATERIALS | SCANSOURCE (SC3SG) vs. United Rentals |
| NESTE OYJ vs. DOCDATA | NESTE OYJ vs. Datang International Power | NESTE OYJ vs. SCANSOURCE | NESTE OYJ vs. MAGIC SOFTWARE ENTR |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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