Correlation Between Scandinavian Tobacco and Allient
Can any of the company-specific risk be diversified away by investing in both Scandinavian Tobacco and Allient 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 Scandinavian Tobacco and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Tobacco Group and Allient, you can compare the effects of market volatilities on Scandinavian Tobacco and Allient 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 Scandinavian Tobacco with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and Allient.
Diversification Opportunities for Scandinavian Tobacco and Allient
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scandinavian and Allient is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and Allient go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and Allient
Assuming the 90 days horizon Scandinavian Tobacco Group is expected to generate 0.59 times more return on investment than Allient. However, Scandinavian Tobacco Group is 1.71 times less risky than Allient. It trades about 0.03 of its potential returns per unit of risk. Allient is currently generating about 0.0 per unit of risk. If you would invest 608.00 in Scandinavian Tobacco Group on September 13, 2024 and sell it today you would earn a total of 108.00 from holding Scandinavian Tobacco Group or generate 17.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. Allient
Performance |
| Timeline |
| Scandinavian Tobacco |
| Allient |
Scandinavian Tobacco and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and Allient
The main advantage of trading using opposite Scandinavian Tobacco and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| Scandinavian Tobacco vs. Universal | Scandinavian Tobacco vs. Imperial Brands PLC | Scandinavian Tobacco vs. Japan Tobacco ADR | Scandinavian Tobacco vs. Philip Morris International |
| Allient vs. Vicor | Allient vs. LSI Industries | Allient vs. Shenzhen Genvict Technologies | Allient vs. Topsec Technologies Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |