Correlation Between ScanSource and BOSTON BEER
Can any of the company-specific risk be diversified away by investing in both ScanSource and BOSTON BEER 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 ScanSource and BOSTON BEER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and BOSTON BEER A , you can compare the effects of market volatilities on ScanSource and BOSTON BEER 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 ScanSource with a short position of BOSTON BEER. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and BOSTON BEER.
Diversification Opportunities for ScanSource and BOSTON BEER
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ScanSource and BOSTON is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and BOSTON BEER A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOSTON BEER A and ScanSource 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 ScanSource are associated (or correlated) with BOSTON BEER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOSTON BEER A has no effect on the direction of ScanSource i.e., ScanSource and BOSTON BEER go up and down completely randomly.
Pair Corralation between ScanSource and BOSTON BEER
Assuming the 90 days horizon ScanSource is expected to generate 0.55 times more return on investment than BOSTON BEER. However, ScanSource is 1.81 times less risky than BOSTON BEER. It trades about -0.02 of its potential returns per unit of risk. BOSTON BEER A is currently generating about -0.07 per unit of risk. If you would invest 3,480 in ScanSource on April 24, 2025 and sell it today you would lose (20.00) from holding ScanSource or give up 0.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ScanSource vs. BOSTON BEER A
Performance |
Timeline |
ScanSource |
BOSTON BEER A |
ScanSource and BOSTON BEER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ScanSource and BOSTON BEER
The main advantage of trading using opposite ScanSource and BOSTON BEER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, BOSTON BEER 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 BOSTON BEER will offset losses from the drop in BOSTON BEER's long position.ScanSource vs. Iridium Communications | ScanSource vs. Infrastrutture Wireless Italiane | ScanSource vs. China Yongda Automobiles | ScanSource vs. Charter Communications |
BOSTON BEER vs. AIR PRODCHEMICALS | BOSTON BEER vs. KINGBOARD CHEMICAL | BOSTON BEER vs. Focus Home Interactive | BOSTON BEER vs. Chuangs China Investments |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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