Correlation Between SCANSOURCE and QUBICGAMES

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

By analyzing existing cross correlation between SCANSOURCE and QUBICGAMES SA ZY, you can compare the effects of market volatilities on SCANSOURCE and QUBICGAMES 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 QUBICGAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANSOURCE and QUBICGAMES.

Diversification Opportunities for SCANSOURCE and QUBICGAMES

-0.42

Correlation Coefficient

SCANSOURCE  QUBICGAMES

Very good diversification

The 3 months correlation between SCANSOURCE and QUBICGAMES is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SCANSOURCE and QUBICGAMES SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUBICGAMES SA ZY 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 QUBICGAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUBICGAMES SA ZY has no effect on the direction of SCANSOURCE i.e., SCANSOURCE and QUBICGAMES go up and down completely randomly.

Pair Corralation between SCANSOURCE and QUBICGAMES

Assuming the 90 days trading horizon SCANSOURCE is expected to under-perform the QUBICGAMES. But the stock apears to be less risky and, when comparing its historical volatility, SCANSOURCE is 2.11 times less risky than QUBICGAMES. The stock trades about -0.01 of its potential returns per unit of risk. The QUBICGAMES SA ZY is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  20.00  in QUBICGAMES SA ZY on April 22, 2025 and sell it today you would earn a total of  1.00  from holding QUBICGAMES SA ZY or generate 5.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SCANSOURCE  vs.  QUBICGAMES SA ZY

SCANSOURCE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SCANSOURCE are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, SCANSOURCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

QUBICGAMES SA ZY

Risk-Adjusted Performance

Insignificant

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

Pair Trading with SCANSOURCE and QUBICGAMES

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

The idea behind SCANSOURCE and QUBICGAMES SA ZY 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.