Correlation Between SCOR PK and Trustcash Holdings
Can any of the company-specific risk be diversified away by investing in both SCOR PK and Trustcash Holdings 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 Trustcash Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and Trustcash Holdings, you can compare the effects of market volatilities on SCOR PK and Trustcash Holdings 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 Trustcash Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and Trustcash Holdings.
Diversification Opportunities for SCOR PK and Trustcash Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCOR and Trustcash is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and Trustcash Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trustcash Holdings 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 Trustcash Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trustcash Holdings has no effect on the direction of SCOR PK i.e., SCOR PK and Trustcash Holdings go up and down completely randomly.
Pair Corralation between SCOR PK and Trustcash Holdings
Assuming the 90 days horizon SCOR PK is expected to generate 0.47 times more return on investment than Trustcash Holdings. However, SCOR PK is 2.12 times less risky than Trustcash Holdings. It trades about 0.0 of its potential returns per unit of risk. Trustcash Holdings is currently generating about -0.06 per unit of risk. If you would invest 277.00 in SCOR PK on September 3, 2024 and sell it today you would lose (29.00) from holding SCOR PK or give up 10.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
SCOR PK vs. Trustcash Holdings
Performance |
| Timeline |
| SCOR PK |
| Trustcash Holdings |
SCOR PK and Trustcash Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and Trustcash Holdings
The main advantage of trading using opposite SCOR PK and Trustcash Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, Trustcash Holdings 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 Trustcash Holdings will offset losses from the drop in Trustcash Holdings' long position.The idea behind SCOR PK and Trustcash Holdings 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.| Trustcash Holdings vs. TOMI Environmental Solutions | Trustcash Holdings vs. SCOR PK | Trustcash Holdings vs. HUMANA INC | Trustcash Holdings vs. Aquagold International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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