Correlation Between Scout Small and Johcm International
Can any of the company-specific risk be diversified away by investing in both Scout Small and Johcm International 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 Scout Small and Johcm International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout Small Cap and Johcm International Opportunities, you can compare the effects of market volatilities on Scout Small and Johcm International 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 Scout Small with a short position of Johcm International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Small and Johcm International.
Diversification Opportunities for Scout Small and Johcm International
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scout and Johcm is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Scout Small Cap and Johcm International Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johcm International and Scout Small 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 Scout Small Cap are associated (or correlated) with Johcm International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johcm International has no effect on the direction of Scout Small i.e., Scout Small and Johcm International go up and down completely randomly.
Pair Corralation between Scout Small and Johcm International
Assuming the 90 days horizon Scout Small Cap is expected to generate 0.87 times more return on investment than Johcm International. However, Scout Small Cap is 1.15 times less risky than Johcm International. It trades about 0.0 of its potential returns per unit of risk. Johcm International Opportunities is currently generating about -0.2 per unit of risk. If you would invest 3,488 in Scout Small Cap on September 12, 2024 and sell it today you would lose (6.00) from holding Scout Small Cap or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scout Small Cap vs. Johcm International Opportunit
Performance |
| Timeline |
| Scout Small Cap |
| Johcm International |
Scout Small and Johcm International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout Small and Johcm International
The main advantage of trading using opposite Scout Small and Johcm International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Small position performs unexpectedly, Johcm International 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 Johcm International will offset losses from the drop in Johcm International's long position.| Scout Small vs. Red Oak Technology | Scout Small vs. Biotechnology Ultrasector Profund | Scout Small vs. Icon Information Technology | Scout Small vs. Janus Global Technology |
| Johcm International vs. Scout Small Cap | Johcm International vs. Vy Columbia Small | Johcm International vs. Glg Intl Small | Johcm International vs. Siit Small Mid |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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