Correlation Between SCOR PK and Robo Global

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

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

Diversification Opportunities for SCOR PK and Robo Global

-0.28

Correlation Coefficient

SCOR PK  Robo Global

Very good diversification

The 3 months correlation between SCOR and Robo is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and Robo Global Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robo Global Artificial 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 Robo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robo Global Artificial has no effect on the direction of SCOR PK i.e., SCOR PK and Robo Global go up and down completely randomly.

Pair Corralation between SCOR PK and Robo Global

Assuming the 90 days horizon SCOR PK is expected to generate 1.8 times more return on investment than Robo Global. However, SCOR PK is 1.8 times more volatile than Robo Global Artificial. It trades about 0.13 of its potential returns per unit of risk. Robo Global Artificial is currently generating about -0.05 per unit of risk. If you would invest  241.00  in SCOR PK on December 27, 2024 and sell it today you would earn a total of  57.00  from holding SCOR PK or generate 23.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SCOR PK  vs.  Robo Global Artificial

SCOR PK

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SCOR PK are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, SCOR PK showed solid returns over the last few months and may actually be approaching a breakup point.

Robo Global Artificial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robo Global Artificial has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Robo Global is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with SCOR PK and Robo Global

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

The idea behind SCOR PK and Robo Global Artificial 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.

Check out your portfolio center.

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.