Correlation Between SCOR PK and Imaflex

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

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

Diversification Opportunities for SCOR PK and Imaflex

0.02

Correlation Coefficient

SCOR PK  Imaflex

Significant diversification

The 3 months correlation between SCOR and Imaflex is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and Imaflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imaflex 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 Imaflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imaflex has no effect on the direction of SCOR PK i.e., SCOR PK and Imaflex go up and down completely randomly.

Pair Corralation between SCOR PK and Imaflex

If you would invest  248.00  in SCOR PK on November 29, 2024 and sell it today you would earn a total of  13.00  from holding SCOR PK or generate 5.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

SCOR PK  vs.  Imaflex

SCOR PK

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SCOR PK are ranked lower than 3 (%) 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 March 2025.

Imaflex

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SCOR PK and Imaflex

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

The idea behind SCOR PK and Imaflex 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.