Correlation Between Whole Foods and ScanSource
Can any of the company-specific risk be diversified away by investing in both Whole Foods 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 Whole Foods and ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whole Foods Market and ScanSource, you can compare the effects of market volatilities on Whole Foods 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 Whole Foods with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whole Foods and ScanSource.
Diversification Opportunities for Whole Foods and ScanSource
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whole and ScanSource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whole Foods Market and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Whole Foods 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 Whole Foods Market 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 Whole Foods i.e., Whole Foods and ScanSource go up and down completely randomly.
Pair Corralation between Whole Foods and ScanSource
If you would invest 4,276 in ScanSource on January 26, 2024 and sell it today you would earn a total of 11.00 from holding ScanSource or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Whole Foods Market vs. ScanSource
Performance |
| Timeline |
| Whole Foods Market |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ScanSource |
Whole Foods and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whole Foods and ScanSource
The main advantage of trading using opposite Whole Foods and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whole Foods 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.| Whole Foods vs. Arrow Electronics | Whole Foods vs. Playtika Holding Corp | Whole Foods vs. NETGEAR | Whole Foods vs. BK Technologies |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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