Correlation Between Takkt AG and SCANSOURCE (SC3SG)
Can any of the company-specific risk be diversified away by investing in both Takkt AG and SCANSOURCE (SC3SG) 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 Takkt AG and SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takkt AG and SCANSOURCE, you can compare the effects of market volatilities on Takkt AG and SCANSOURCE (SC3SG) 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 Takkt AG with a short position of SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Takkt AG and SCANSOURCE (SC3SG).
Diversification Opportunities for Takkt AG and SCANSOURCE (SC3SG)
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Takkt and SCANSOURCE is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Takkt AG and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) and Takkt AG 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 Takkt AG are associated (or correlated) with SCANSOURCE (SC3SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE (SC3SG) has no effect on the direction of Takkt AG i.e., Takkt AG and SCANSOURCE (SC3SG) go up and down completely randomly.
Pair Corralation between Takkt AG and SCANSOURCE (SC3SG)
Assuming the 90 days trading horizon Takkt AG is expected to under-perform the SCANSOURCE (SC3SG). But the stock apears to be less risky and, when comparing its historical volatility, Takkt AG is 1.2 times less risky than SCANSOURCE (SC3SG). The stock trades about -0.04 of its potential returns per unit of risk. The SCANSOURCE is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,860 in SCANSOURCE on September 2, 2024 and sell it today you would earn a total of 1,880 from holding SCANSOURCE or generate 65.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Takkt AG vs. SCANSOURCE
Performance |
| Timeline |
| Takkt AG |
| SCANSOURCE (SC3SG) |
Takkt AG and SCANSOURCE (SC3SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takkt AG and SCANSOURCE (SC3SG)
The main advantage of trading using opposite Takkt AG and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takkt AG position performs unexpectedly, SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG) will offset losses from the drop in SCANSOURCE (SC3SG)'s long position.| Takkt AG vs. ULTRA CLEAN HLDGS | Takkt AG vs. ALERION CLEANPOWER | Takkt AG vs. HK Electric Investments | Takkt AG vs. Gladstone Investment |
| SCANSOURCE (SC3SG) vs. SIVERS SEMICONDUCTORS AB | SCANSOURCE (SC3SG) vs. Darden Restaurants | SCANSOURCE (SC3SG) vs. Reliance Steel Aluminum | SCANSOURCE (SC3SG) vs. Q2M Managementberatung AG |
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 CEOs Directory module to screen CEOs from public companies around the world.
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