Correlation Between SCOTT TECHNOLOGY and Hologic

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

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

Diversification Opportunities for SCOTT TECHNOLOGY and Hologic

0.0

Correlation Coefficient

SCOTT TECHNOLOGY  Hologic

Pay attention - limited upside

The 3 months correlation between SCOTT and Hologic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCOTT TECHNOLOGY and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic and SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY are associated (or correlated) with Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of SCOTT TECHNOLOGY i.e., SCOTT TECHNOLOGY and Hologic go up and down completely randomly.

Pair Corralation between SCOTT TECHNOLOGY and Hologic

If you would invest  152.00  in SCOTT TECHNOLOGY on October 24, 2024 and sell it today you would lose (27.00) from holding SCOTT TECHNOLOGY or give up 17.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SCOTT TECHNOLOGY  vs.  Hologic

SCOTT TECHNOLOGY

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SCOTT TECHNOLOGY are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical indicators, SCOTT TECHNOLOGY exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hologic

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with SCOTT TECHNOLOGY and Hologic

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

The idea behind SCOTT TECHNOLOGY and Hologic 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.