Correlation Between SCOR PK and East West

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

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

Diversification Opportunities for SCOR PK and East West

0.0

Correlation Coefficient

SCOR PK  East West

Pay attention - limited upside

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

Pair Corralation between SCOR PK and East West

If you would invest  219.00  in SCOR PK on October 4, 2024 and sell it today you would earn a total of  28.00  from holding SCOR PK or generate 12.79% return on investment over 90 days.

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

SCOR PK  vs.  East West Petroleum

SCOR PK

Risk-Adjusted Performance

4 of 100

Insignificant

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

East West Petroleum

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days East West Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, East West is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SCOR PK and East West

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

The idea behind SCOR PK and East West Petroleum 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.