Correlation Between Scandinavian Tobacco and ChampionX
Can any of the company-specific risk be diversified away by investing in both Scandinavian Tobacco and ChampionX 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 Scandinavian Tobacco and ChampionX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Tobacco Group and ChampionX, you can compare the effects of market volatilities on Scandinavian Tobacco and ChampionX 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 Scandinavian Tobacco with a short position of ChampionX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and ChampionX.
Diversification Opportunities for Scandinavian Tobacco and ChampionX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scandinavian and ChampionX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and ChampionX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChampionX and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with ChampionX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChampionX has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and ChampionX go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and ChampionX
If you would invest (100.00) in ChampionX on February 26, 2024 and sell it today you would earn a total of 100.00 from holding ChampionX or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Scandinavian Tobacco Group vs. ChampionX
Performance |
Timeline |
Scandinavian Tobacco |
ChampionX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Scandinavian Tobacco and ChampionX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scandinavian Tobacco and ChampionX
The main advantage of trading using opposite Scandinavian Tobacco and ChampionX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, ChampionX 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 ChampionX will offset losses from the drop in ChampionX's long position.Scandinavian Tobacco vs. Imperial Brands PLC | Scandinavian Tobacco vs. RLX Technology | Scandinavian Tobacco vs. British American Tobacco | Scandinavian Tobacco vs. Turning Point Brands |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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