Correlation Between Scandinavian Tobacco and OCPMR
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By analyzing existing cross correlation between Scandinavian Tobacco Group and OCPMR 375 23 JUN 31, you can compare the effects of market volatilities on Scandinavian Tobacco and OCPMR 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 OCPMR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and OCPMR.
Diversification Opportunities for Scandinavian Tobacco and OCPMR
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scandinavian and OCPMR is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and OCPMR 375 23 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCPMR 375 23 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 OCPMR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCPMR 375 23 has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and OCPMR go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and OCPMR
Assuming the 90 days horizon Scandinavian Tobacco Group is expected to generate 0.42 times more return on investment than OCPMR. However, Scandinavian Tobacco Group is 2.4 times less risky than OCPMR. It trades about -0.08 of its potential returns per unit of risk. OCPMR 375 23 JUN 31 is currently generating about -0.2 per unit of risk. If you would invest 750.00 in Scandinavian Tobacco Group on September 12, 2024 and sell it today you would lose (34.00) from holding Scandinavian Tobacco Group or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.97% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. OCPMR 375 23 JUN 31
Performance |
| Timeline |
| Scandinavian Tobacco |
| OCPMR 375 23 |
Scandinavian Tobacco and OCPMR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and OCPMR
The main advantage of trading using opposite Scandinavian Tobacco and OCPMR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, OCPMR 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 OCPMR will offset losses from the drop in OCPMR's long position.| Scandinavian Tobacco vs. Imperial Brands PLC | Scandinavian Tobacco vs. RLX Technology | Scandinavian Tobacco vs. British American Tobacco | Scandinavian Tobacco vs. Turning Point Brands |
| OCPMR vs. CF Industries Holdings | OCPMR vs. Ecovyst | OCPMR vs. Axalta Coating Systems | OCPMR vs. Arrow Electronics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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