Correlation Between Scandinavian Tobacco and Qwest
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By analyzing existing cross correlation between Scandinavian Tobacco Group and Qwest 725, you can compare the effects of market volatilities on Scandinavian Tobacco and Qwest 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 Qwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and Qwest.
Diversification Opportunities for Scandinavian Tobacco and Qwest
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scandinavian and Qwest is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and Qwest 725 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qwest 725 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 Qwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qwest 725 has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and Qwest go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and Qwest
Assuming the 90 days horizon Scandinavian Tobacco Group is expected to under-perform the Qwest. In addition to that, Scandinavian Tobacco is 1.72 times more volatile than Qwest 725. It trades about -0.02 of its total potential returns per unit of risk. Qwest 725 is currently generating about 0.02 per unit of volatility. If you would invest 9,707 in Qwest 725 on September 14, 2024 and sell it today you would earn a total of 266.00 from holding Qwest 725 or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.99% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. Qwest 725
Performance |
| Timeline |
| Scandinavian Tobacco |
| Qwest 725 |
Scandinavian Tobacco and Qwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and Qwest
The main advantage of trading using opposite Scandinavian Tobacco and Qwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, Qwest 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 Qwest will offset losses from the drop in Qwest'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 |
| Qwest vs. Anheuser Busch Inbev | Qwest vs. Scandinavian Tobacco Group | Qwest vs. Molson Coors Brewing | Qwest vs. The Coca Cola |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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