Correlation Between SCOR PK and FLFR
Can any of the company-specific risk be diversified away by investing in both SCOR PK and FLFR 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 SCOR PK and FLFR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and FLFR, you can compare the effects of market volatilities on SCOR PK and FLFR 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 SCOR PK with a short position of FLFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and FLFR.
Diversification Opportunities for SCOR PK and FLFR
Pay attention - limited upside
The 3 months correlation between SCOR and FLFR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and FLFR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLFR and SCOR PK 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 SCOR PK are associated (or correlated) with FLFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLFR has no effect on the direction of SCOR PK i.e., SCOR PK and FLFR go up and down completely randomly.
Pair Corralation between SCOR PK and FLFR
If you would invest 252.00 in SCOR PK on December 1, 2024 and sell it today you would earn a total of 23.00 from holding SCOR PK or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SCOR PK vs. FLFR
Performance |
| Timeline |
| SCOR PK |
| FLFR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SCOR PK and FLFR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and FLFR
The main advantage of trading using opposite SCOR PK and FLFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, FLFR 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 FLFR will offset losses from the drop in FLFR's long position.The idea behind SCOR PK and FLFR 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.| FLFR vs. Franklin FTSE Germany | FLFR vs. Franklin FTSE United | FLFR vs. Franklin FTSE Mexico | FLFR vs. Franklin FTSE Australia |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets |