Correlation Between HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG)

Can any of the company-specific risk be diversified away by investing in both HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG) 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 HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HAPAG LLOYD UNSPADR 12 and SCANSOURCE, you can compare the effects of market volatilities on HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG) 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 HAPAG-LLOYD UNSPADR with a short position of SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG).

Diversification Opportunities for HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG)

-0.18

Correlation Coefficient

HAPAG-LLOYD UNSPADR  SCANSOURCE (SC3SG)

Good diversification

The 3 months correlation between HAPAG-LLOYD and SCANSOURCE is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding HAPAG LLOYD UNSPADR 12 and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) and HAPAG-LLOYD UNSPADR 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 HAPAG LLOYD UNSPADR 12 are associated (or correlated) with SCANSOURCE (SC3SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE (SC3SG) has no effect on the direction of HAPAG-LLOYD UNSPADR i.e., HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG) go up and down completely randomly.

Pair Corralation between HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG)

Assuming the 90 days trading horizon HAPAG LLOYD UNSPADR 12 is expected to generate 1.87 times more return on investment than SCANSOURCE (SC3SG). However, HAPAG-LLOYD UNSPADR is 1.87 times more volatile than SCANSOURCE. It trades about -0.01 of its potential returns per unit of risk. SCANSOURCE is currently generating about -0.18 per unit of risk. If you would invest  7,750  in HAPAG LLOYD UNSPADR 12 on October 10, 2024 and sell it today you would lose (100.00) from holding HAPAG LLOYD UNSPADR 12 or give up 1.29% of portfolio value over 90 days.

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

HAPAG LLOYD UNSPADR 12  vs.  SCANSOURCE

HAPAG LLOYD UNSPADR

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HAPAG LLOYD UNSPADR 12 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, HAPAG-LLOYD UNSPADR reported solid returns over the last few months and may actually be approaching a breakup point.

SCANSOURCE (SC3SG)

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SCANSOURCE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, SCANSOURCE (SC3SG) may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG)

The main advantage of trading using opposite HAPAG-LLOYD UNSPADR and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAPAG-LLOYD UNSPADR position performs unexpectedly, SCANSOURCE (SC3SG) 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 (SC3SG) will offset losses from the drop in SCANSOURCE (SC3SG)'s long position.

The idea behind HAPAG LLOYD UNSPADR 12 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.