Correlation Between ScanSource and Fluent
Can any of the company-specific risk be diversified away by investing in both ScanSource and Fluent 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 and Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Fluent Inc, you can compare the effects of market volatilities on ScanSource and Fluent 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 with a short position of Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Fluent.
Diversification Opportunities for ScanSource and Fluent
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between ScanSource and Fluent is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and ScanSource 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of ScanSource i.e., ScanSource and Fluent go up and down completely randomly.
Pair Corralation between ScanSource and Fluent
Given the investment horizon of 90 days ScanSource is expected to generate 0.42 times more return on investment than Fluent. However, ScanSource is 2.38 times less risky than Fluent. It trades about 0.07 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.03 per unit of risk. If you would invest 3,160 in ScanSource on September 4, 2024 and sell it today you would earn a total of 2,120 from holding ScanSource or generate 67.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanSource vs. Fluent Inc
Performance |
| Timeline |
| ScanSource |
| Fluent Inc |
ScanSource and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and Fluent
The main advantage of trading using opposite ScanSource and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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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