Correlation Between ScanSource and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both ScanSource and Ingram Micro 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 Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Ingram Micro Holding, you can compare the effects of market volatilities on ScanSource and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Ingram Micro.
Diversification Opportunities for ScanSource and Ingram Micro
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ScanSource and Ingram is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Ingram Micro Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Holding 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Holding has no effect on the direction of ScanSource i.e., ScanSource and Ingram Micro go up and down completely randomly.
Pair Corralation between ScanSource and Ingram Micro
Given the investment horizon of 90 days ScanSource is expected to generate 1.94 times more return on investment than Ingram Micro. However, ScanSource is 1.94 times more volatile than Ingram Micro Holding. It trades about 0.2 of its potential returns per unit of risk. Ingram Micro Holding is currently generating about -0.21 per unit of risk. If you would invest 4,545 in ScanSource on August 28, 2024 and sell it today you would earn a total of 632.00 from holding ScanSource or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanSource vs. Ingram Micro Holding
Performance |
| Timeline |
| ScanSource |
| Ingram Micro Holding |
ScanSource and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and Ingram Micro
The main advantage of trading using opposite ScanSource and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
| Ingram Micro vs. Perseus Mining Limited | Ingram Micro vs. Mangazeya Mining | Ingram Micro vs. Sweetgreen | Ingram Micro vs. Cleantech Power Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |