Correlation Between SCOR PK and Main International
Can any of the company-specific risk be diversified away by investing in both SCOR PK and Main International 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 Main International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and Main International ETF, you can compare the effects of market volatilities on SCOR PK and Main International 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 Main International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and Main International.
Diversification Opportunities for SCOR PK and Main International
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCOR and Main is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF 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 Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of SCOR PK i.e., SCOR PK and Main International go up and down completely randomly.
Pair Corralation between SCOR PK and Main International
Assuming the 90 days horizon SCOR PK is expected to generate 3.4 times more return on investment than Main International. However, SCOR PK is 3.4 times more volatile than Main International ETF. It trades about 0.29 of its potential returns per unit of risk. Main International ETF is currently generating about 0.0 per unit of risk. If you would invest 210.00 in SCOR PK on September 1, 2024 and sell it today you would earn a total of 38.00 from holding SCOR PK or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SCOR PK vs. Main International ETF
Performance |
| Timeline |
| SCOR PK |
| Main International ETF |
SCOR PK and Main International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and Main International
The main advantage of trading using opposite SCOR PK and Main International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, Main International 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 Main International will offset losses from the drop in Main International's long position.The idea behind SCOR PK and Main International ETF 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.| Main International vs. ADTRAN Inc | Main International vs. International Business Machines | Main International vs. Integrated Ventures | Main International vs. Harmonic |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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