Correlation Between Oasis Hotel and ScanSource

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

Diversification Opportunities for Oasis Hotel and ScanSource

OasisScanSourceDiversified AwayOasisScanSourceDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Oasis and ScanSource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Oasis Hotel 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 Oasis Hotel Resort 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 Oasis Hotel i.e., Oasis Hotel and ScanSource go up and down completely randomly.

Pair Corralation between Oasis Hotel and ScanSource

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]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Oasis Hotel Resort  vs.  ScanSource

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-505
JavaScript chart by amCharts 3.21.15OHTR SCSC
       Timeline  
Oasis Hotel Resort 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oasis Hotel Resort has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Oasis Hotel is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.00020.0002050.000210.000215
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

Oasis Hotel and ScanSource Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15OHTR SCSC
       Returns  

Pair Trading with Oasis Hotel and ScanSource

The main advantage of trading using opposite Oasis Hotel and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel 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 Oasis Hotel Resort 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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