Correlation Between SCOR PK and ETF Series
Can any of the company-specific risk be diversified away by investing in both SCOR PK and ETF Series 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 ETF Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and ETF Series Solutions, you can compare the effects of market volatilities on SCOR PK and ETF Series 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 ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and ETF Series.
Diversification Opportunities for SCOR PK and ETF Series
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SCOR and ETF is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions 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 ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of SCOR PK i.e., SCOR PK and ETF Series go up and down completely randomly.
Pair Corralation between SCOR PK and ETF Series
Assuming the 90 days horizon SCOR PK is expected to generate 2.4 times more return on investment than ETF Series. However, SCOR PK is 2.4 times more volatile than ETF Series Solutions. It trades about 0.31 of its potential returns per unit of risk. ETF Series Solutions is currently generating about 0.17 per unit of risk. If you would invest 214.00 in SCOR PK on September 13, 2024 and sell it today you would earn a total of 40.00 from holding SCOR PK or generate 18.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SCOR PK vs. ETF Series Solutions
Performance |
| Timeline |
| SCOR PK |
| ETF Series Solutions |
SCOR PK and ETF Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and ETF Series
The main advantage of trading using opposite SCOR PK and ETF Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, ETF Series 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 ETF Series will offset losses from the drop in ETF Series' long position.The idea behind SCOR PK and ETF Series Solutions 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.| ETF Series vs. Franklin Core Dividend | ETF Series vs. Innovator Equity Accelerated | ETF Series vs. Franklin Exponential Data | ETF Series vs. DBX ETF Trust |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |