Correlation Between SCANDION ONC and OLD MUTUAL

Can any of the company-specific risk be diversified away by investing in both SCANDION ONC and OLD MUTUAL 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 SCANDION ONC and OLD MUTUAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SCANDION ONC DK 0735 and OLD MUTUAL LTD, you can compare the effects of market volatilities on SCANDION ONC and OLD MUTUAL 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 SCANDION ONC with a short position of OLD MUTUAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDION ONC and OLD MUTUAL.

Diversification Opportunities for SCANDION ONC and OLD MUTUAL

-0.32

Correlation Coefficient

SCANDION ONC  OLD MUTUAL

Very good diversification

The 3 months correlation between SCANDION and OLD is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SCANDION ONC DK 0735 and OLD MUTUAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLD MUTUAL LTD and SCANDION ONC 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 SCANDION ONC DK 0735 are associated (or correlated) with OLD MUTUAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLD MUTUAL LTD has no effect on the direction of SCANDION ONC i.e., SCANDION ONC and OLD MUTUAL go up and down completely randomly.

Pair Corralation between SCANDION ONC and OLD MUTUAL

Assuming the 90 days horizon SCANDION ONC DK 0735 is expected to under-perform the OLD MUTUAL. In addition to that, SCANDION ONC is 1.71 times more volatile than OLD MUTUAL LTD. It trades about -0.03 of its total potential returns per unit of risk. OLD MUTUAL LTD is currently generating about 0.02 per unit of volatility. If you would invest  54.00  in OLD MUTUAL LTD on April 22, 2025 and sell it today you would lose (3.00) from holding OLD MUTUAL LTD or give up 5.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

SCANDION ONC DK 0735  vs.  OLD MUTUAL LTD

SCANDION ONC DK

Risk-Adjusted Performance

Very Weak

Over the last 90 days SCANDION ONC DK 0735 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

OLD MUTUAL LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OLD MUTUAL LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, OLD MUTUAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SCANDION ONC and OLD MUTUAL

The main advantage of trading using opposite SCANDION ONC and OLD MUTUAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDION ONC position performs unexpectedly, OLD MUTUAL 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 OLD MUTUAL will offset losses from the drop in OLD MUTUAL's long position.

The idea behind SCANDION ONC DK 0735 and OLD MUTUAL LTD 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.