Correlation Between Calissio Resources and SCOR SE

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

By analyzing existing cross correlation between Calissio Resources Group and SCOR SE, you can compare the effects of market volatilities on Calissio Resources and SCOR SE 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 Calissio Resources with a short position of SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calissio Resources and SCOR SE.

Diversification Opportunities for Calissio Resources and SCOR SE

0.55

Correlation Coefficient

Calissio Resources  SCOR SE

Very weak diversification

The 3 months correlation between Calissio and SCOR is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Calissio Resources Group and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE and Calissio Resources 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 Calissio Resources Group are associated (or correlated) with SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Calissio Resources i.e., Calissio Resources and SCOR SE go up and down completely randomly.

Pair Corralation between Calissio Resources and SCOR SE

Given the investment horizon of 90 days Calissio Resources Group is expected to generate 135.66 times more return on investment than SCOR SE. However, Calissio Resources is 135.66 times more volatile than SCOR SE. It trades about 0.14 of its potential returns per unit of risk. SCOR SE is currently generating about 0.13 per unit of risk. If you would invest  0.04  in Calissio Resources Group on December 20, 2024 and sell it today you would earn a total of  0.00  from holding Calissio Resources Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.33%
Values	Daily Returns

Calissio Resources Group  vs.  SCOR SE

Calissio Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calissio Resources Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, Calissio Resources reported solid returns over the last few months and may actually be approaching a breakup point.

SCOR SE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SCOR SE are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, SCOR SE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Calissio Resources and SCOR SE

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

The idea behind Calissio Resources Group and SCOR SE 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.