Correlation Between Lippo Malls and ScanSource

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Lippo Malls Indonesia  vs.  ScanSource

 Performance 
       Timeline  
Lippo Malls Indonesia 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Lippo Malls Indonesia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Lippo Malls may actually be approaching a critical reversion point that can send shares even higher in August 2025.
ScanSource 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ScanSource reported solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Lippo Malls Indonesia and ScanSource pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Stocks Directory
Find actively traded stocks across global markets
Volatility Analysis
Get historical volatility and risk analysis based on latest market data