Correlation Between Ballys Corp and ScanSource

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Can any of the company-specific risk be diversified away by investing in both Ballys Corp 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 Ballys Corp and ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballys Corp and ScanSource, you can compare the effects of market volatilities on Ballys Corp 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 Ballys Corp with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballys Corp and ScanSource.

Diversification Opportunities for Ballys Corp and ScanSource

BallysScanSourceDiversified AwayBallysScanSourceDiversified Away100%
0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ballys and ScanSource is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ballys Corp and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Ballys Corp 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 Ballys Corp 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 Ballys Corp i.e., Ballys Corp and ScanSource go up and down completely randomly.

Pair Corralation between Ballys Corp and ScanSource

Given the investment horizon of 90 days Ballys Corp is expected to generate 3.49 times less return on investment than ScanSource. But when comparing it to its historical volatility, Ballys Corp is 7.5 times less risky than ScanSource. It trades about 0.2 of its potential returns per unit of risk. ScanSource is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4,545  in ScanSource on October 26, 2024 and sell it today you would earn a total of  576.00  from holding ScanSource or generate 12.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ballys Corp  vs.  ScanSource

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-505
JavaScript chart by amCharts 3.21.15BALY SCSC
       Timeline  
Ballys Corp 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Ballys Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Ballys Corp is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan17.417.517.617.717.817.91818.1
ScanSource 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, ScanSource exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan42444648505254

Ballys Corp and ScanSource Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.95-0.67-0.39-0.110.0041290.130.410.690.971.25 1234
JavaScript chart by amCharts 3.21.15BALY SCSC
       Returns  

Pair Trading with Ballys Corp and ScanSource

The main advantage of trading using opposite Ballys Corp and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballys Corp 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 Ballys Corp 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.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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