Correlation Between SCANSOURCE (SC3SG) and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both SCANSOURCE (SC3SG) and BANK MANDIRI 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 BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANSOURCE and BANK MANDIRI, you can compare the effects of market volatilities on SCANSOURCE (SC3SG) and BANK MANDIRI 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 BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANSOURCE (SC3SG) and BANK MANDIRI.
Diversification Opportunities for SCANSOURCE (SC3SG) and BANK MANDIRI
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCANSOURCE and BANK is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SCANSOURCE and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI 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 BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of SCANSOURCE (SC3SG) i.e., SCANSOURCE (SC3SG) and BANK MANDIRI go up and down completely randomly.
Pair Corralation between SCANSOURCE (SC3SG) and BANK MANDIRI
Assuming the 90 days trading horizon SCANSOURCE is expected to generate 0.29 times more return on investment than BANK MANDIRI. However, SCANSOURCE is 3.43 times less risky than BANK MANDIRI. It trades about -0.06 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.02 per unit of risk. If you would invest 4,840 in SCANSOURCE on October 11, 2024 and sell it today you would lose (240.00) from holding SCANSOURCE or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANSOURCE vs. BANK MANDIRI
Performance |
| Timeline |
| SCANSOURCE (SC3SG) |
| BANK MANDIRI |
SCANSOURCE (SC3SG) and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANSOURCE (SC3SG) and BANK MANDIRI
The main advantage of trading using opposite SCANSOURCE (SC3SG) and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANSOURCE (SC3SG) position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| SCANSOURCE (SC3SG) vs. Eagle Materials | SCANSOURCE (SC3SG) vs. APPLIED MATERIALS | SCANSOURCE (SC3SG) vs. AIR PRODCHEMICALS | SCANSOURCE (SC3SG) vs. PTT Global Chemical |
| BANK MANDIRI vs. SENECA FOODS A | BANK MANDIRI vs. SPARTAN STORES | BANK MANDIRI vs. H2O Retailing | BANK MANDIRI 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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