Correlation Between Scottie Resources and Marine Products
Can any of the company-specific risk be diversified away by investing in both Scottie Resources and Marine Products 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 Scottie Resources and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scottie Resources Corp and Marine Products, you can compare the effects of market volatilities on Scottie Resources and Marine Products 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 Scottie Resources with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scottie Resources and Marine Products.
Diversification Opportunities for Scottie Resources and Marine Products
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scottie and Marine is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Scottie Resources Corp and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and Scottie Resources 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 Scottie Resources Corp are associated (or correlated) with Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Scottie Resources i.e., Scottie Resources and Marine Products go up and down completely randomly.
Pair Corralation between Scottie Resources and Marine Products
Assuming the 90 days horizon Scottie Resources Corp is expected to generate 1.4 times more return on investment than Marine Products. However, Scottie Resources is 1.4 times more volatile than Marine Products. It trades about 0.08 of its potential returns per unit of risk. Marine Products is currently generating about -0.06 per unit of risk. If you would invest 64.00 in Scottie Resources Corp on November 29, 2024 and sell it today you would earn a total of 3.00 from holding Scottie Resources Corp or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scottie Resources Corp vs. Marine Products
Performance |
| Timeline |
| Scottie Resources Corp |
| Marine Products |
Scottie Resources and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scottie Resources and Marine Products
The main advantage of trading using opposite Scottie Resources and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scottie Resources position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Scottie Resources vs. Blackrock Silver Corp | Scottie Resources vs. AbraSilver Resource Corp | Scottie Resources vs. CMC Metals | Scottie Resources vs. Metallic Minerals Corp |
| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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