Correlation Between ScanSource and Barnes Noble

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ScanSource and Barnes Noble 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 Barnes Noble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Barnes Noble, you can compare the effects of market volatilities on ScanSource and Barnes Noble 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 Barnes Noble. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Barnes Noble.

Diversification Opportunities for ScanSource and Barnes Noble

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between ScanSource and Barnes Noble

If you would invest  4,252  in ScanSource on December 29, 2023 and sell it today you would earn a total of  121.00  from holding ScanSource or generate 2.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

ScanSource  vs.  Barnes Noble

 Performance 
       Timeline  
ScanSource 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
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 uncertain basic indicators, ScanSource may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Barnes Noble 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Barnes Noble has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Barnes Noble is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

ScanSource and Barnes Noble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ScanSource and Barnes Noble

The main advantage of trading using opposite ScanSource and Barnes Noble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, Barnes Noble 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 Barnes Noble will offset losses from the drop in Barnes Noble's long position.
The idea behind ScanSource and Barnes Noble 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format