Correlation Between Scandinavian Tobacco and Where Food
Can any of the company-specific risk be diversified away by investing in both Scandinavian Tobacco and Where Food 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 Where Food 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 Where Food Comes, you can compare the effects of market volatilities on Scandinavian Tobacco and Where Food 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 Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and Where Food.
Diversification Opportunities for Scandinavian Tobacco and Where Food
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scandinavian and Where is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes 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 Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and Where Food go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and Where Food
Assuming the 90 days horizon Scandinavian Tobacco Group is expected to under-perform the Where Food. But the pink sheet apears to be less risky and, when comparing its historical volatility, Scandinavian Tobacco Group is 2.02 times less risky than Where Food. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Where Food Comes is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,315 in Where Food Comes on September 14, 2024 and sell it today you would lose (85.00) from holding Where Food Comes or give up 6.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. Where Food Comes
Performance |
| Timeline |
| Scandinavian Tobacco |
| Where Food Comes |
Scandinavian Tobacco and Where Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and Where Food
The main advantage of trading using opposite Scandinavian Tobacco and Where Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, Where Food 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 Where Food will offset losses from the drop in Where Food'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 |
| Where Food vs. Dave Warrants | Where Food vs. Swvl Holdings Corp | Where Food vs. Guardforce AI Co | Where Food vs. Thayer Ventures Acquisition |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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