Correlation Between ScanSource and Ballys Corp

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Can any of the company-specific risk be diversified away by investing in both ScanSource and Ballys Corp 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 ScanSource and Ballys Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Ballys Corp, you can compare the effects of market volatilities on ScanSource and Ballys Corp 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 ScanSource with a short position of Ballys Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Ballys Corp.

Diversification Opportunities for ScanSource and Ballys Corp

ScanSourceBallysDiversified AwayScanSourceBallysDiversified Away100%
0.54
  Correlation Coefficient

Very weak diversification

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

Pair Corralation between ScanSource and Ballys Corp

Given the investment horizon of 90 days ScanSource is expected to generate 7.5 times more return on investment than Ballys Corp. However, ScanSource is 7.5 times more volatile than Ballys Corp. It trades about 0.09 of its potential returns per unit of risk. Ballys Corp is currently generating about 0.2 per unit of risk. If you would invest  4,545  in ScanSource on October 26, 2024 and sell it today you would earn a total of  576.00  from holding ScanSource or generate 12.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ScanSource  vs.  Ballys Corp

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-505
JavaScript chart by amCharts 3.21.15SCSC BALY
       Timeline  
ScanSource 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, ScanSource exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan42444648505254
Ballys Corp 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Ballys Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Ballys Corp is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan17.417.517.617.717.817.91818.1

ScanSource and Ballys Corp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.73-5.79-3.85-1.910.03281.943.915.877.84 1234
JavaScript chart by amCharts 3.21.15SCSC BALY
       Returns  

Pair Trading with ScanSource and Ballys Corp

The main advantage of trading using opposite ScanSource and Ballys Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, Ballys Corp 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 Ballys Corp will offset losses from the drop in Ballys Corp's long position.
The idea behind ScanSource and Ballys Corp 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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