Correlation Between B Riley and SCCB

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

By analyzing existing cross correlation between B Riley Financial and SCCB, you can compare the effects of market volatilities on B Riley and SCCB 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 B Riley with a short position of SCCB. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Riley and SCCB.

Diversification Opportunities for B Riley and SCCB

0.54

Correlation Coefficient

B Riley  SCCB

Very weak diversification

The 3 months correlation between RILYZ and SCCB is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding B Riley Financial and SCCB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCCB and B Riley 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 B Riley Financial are associated (or correlated) with SCCB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCCB has no effect on the direction of B Riley i.e., B Riley and SCCB go up and down completely randomly.

Pair Corralation between B Riley and SCCB

If you would invest  2,498  in SCCB on September 21, 2024 and sell it today you would earn a total of  0.00  from holding SCCB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.94%
Values	Daily Returns

B Riley Financial  vs.  SCCB

B Riley Financial

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in B Riley Financial are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, B Riley is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

SCCB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SCCB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, SCCB is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with B Riley and SCCB

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

The idea behind B Riley Financial and SCCB 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.