Correlation Between Lippo Malls and ScanSource
Can any of the company-specific risk be diversified away by investing in both Lippo Malls and ScanSource 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 Lippo Malls and ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lippo Malls Indonesia and ScanSource, you can compare the effects of market volatilities on Lippo Malls and ScanSource 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 Lippo Malls with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lippo Malls and ScanSource.
Diversification Opportunities for Lippo Malls and ScanSource
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lippo and ScanSource is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lippo Malls Indonesia and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Lippo Malls 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 Lippo Malls Indonesia are associated (or correlated) with ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Lippo Malls i.e., Lippo Malls and ScanSource go up and down completely randomly.
Pair Corralation between Lippo Malls and ScanSource
Assuming the 90 days horizon Lippo Malls is expected to generate 2.19 times less return on investment than ScanSource. In addition to that, Lippo Malls is 2.01 times more volatile than ScanSource. It trades about 0.05 of its total potential returns per unit of risk. ScanSource is currently generating about 0.21 per unit of volatility. If you would invest 2,700 in ScanSource on April 21, 2025 and sell it today you would earn a total of 800.00 from holding ScanSource or generate 29.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lippo Malls Indonesia vs. ScanSource
Performance |
Timeline |
Lippo Malls Indonesia |
ScanSource |
Lippo Malls and ScanSource Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lippo Malls and ScanSource
The main advantage of trading using opposite Lippo Malls and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lippo Malls position performs unexpectedly, ScanSource 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 will offset losses from the drop in ScanSource's long position.Lippo Malls vs. Gaztransport Technigaz SA | Lippo Malls vs. Television Broadcasts Limited | Lippo Malls vs. Auto Trader Group | Lippo Malls vs. Salesforce |
ScanSource vs. GOLDGROUP MINING INC | ScanSource vs. Ringmetall SE | ScanSource vs. LION ONE METALS | ScanSource vs. GOLDQUEST MINING |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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