Correlation Between IClick Interactive and ScanSource
Can any of the company-specific risk be diversified away by investing in both IClick Interactive and ScanSource 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 IClick Interactive and ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iClick Interactive Asia and ScanSource, you can compare the effects of market volatilities on IClick Interactive and ScanSource 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 IClick Interactive with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of IClick Interactive and ScanSource.
Diversification Opportunities for IClick Interactive and ScanSource
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IClick and ScanSource is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding iClick Interactive Asia and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and IClick Interactive 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 iClick Interactive Asia are associated (or correlated) with ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of IClick Interactive i.e., IClick Interactive and ScanSource go up and down completely randomly.
Pair Corralation between IClick Interactive and ScanSource
Given the investment horizon of 90 days iClick Interactive Asia is expected to under-perform the ScanSource. In addition to that, IClick Interactive is 1.78 times more volatile than ScanSource. It trades about -0.11 of its total potential returns per unit of risk. ScanSource is currently generating about -0.04 per unit of volatility. If you would invest 4,153 in ScanSource on January 20, 2024 and sell it today you would lose (103.00) from holding ScanSource or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iClick Interactive Asia vs. ScanSource
Performance |
| Timeline |
| iClick Interactive Asia |
| ScanSource |
IClick Interactive and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IClick Interactive and ScanSource
The main advantage of trading using opposite IClick Interactive and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IClick Interactive position performs unexpectedly, ScanSource 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 ScanSource will offset losses from the drop in ScanSource's long position.| IClick Interactive vs. MGO Global Common | IClick Interactive vs. Baosheng Media Group | IClick Interactive vs. Glory Star New | IClick Interactive vs. Impact Fusion International |
| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Snap One Holdings | ScanSource vs. Synnex |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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