Correlation Between Scandinavian Tobacco and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Scandinavian Tobacco and Ameritrans Capital 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 Ameritrans Capital 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 Ameritrans Capital Corp, you can compare the effects of market volatilities on Scandinavian Tobacco and Ameritrans Capital 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 Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and Ameritrans Capital.
Diversification Opportunities for Scandinavian Tobacco and Ameritrans Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scandinavian and Ameritrans is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp 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 Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and Ameritrans Capital
If you would invest 15.00 in Ameritrans Capital Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Ameritrans Capital Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Scandinavian Tobacco |
| Ameritrans Capital Corp |
Scandinavian Tobacco and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and Ameritrans Capital
The main advantage of trading using opposite Scandinavian Tobacco and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital'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 |
| Ameritrans Capital vs. Nuvalent | Ameritrans Capital vs. Ryman Hospitality Properties | Ameritrans Capital vs. Evertz Technologies Limited | Ameritrans Capital vs. Paysafe |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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