Correlation Between Beowulf Mining and Scandic Hotels
Can any of the company-specific risk be diversified away by investing in both Beowulf Mining and Scandic Hotels 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 Beowulf Mining and Scandic Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beowulf Mining and Scandic Hotels Group, you can compare the effects of market volatilities on Beowulf Mining and Scandic Hotels 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 Beowulf Mining with a short position of Scandic Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Scandic Hotels.
Diversification Opportunities for Beowulf Mining and Scandic Hotels
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beowulf and Scandic is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining and Scandic Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandic Hotels Group and Beowulf Mining 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 Beowulf Mining are associated (or correlated) with Scandic Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandic Hotels Group has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and Scandic Hotels go up and down completely randomly.
Pair Corralation between Beowulf Mining and Scandic Hotels
Assuming the 90 days trading horizon Beowulf Mining is expected to generate 2.33 times less return on investment than Scandic Hotels. In addition to that, Beowulf Mining is 1.27 times more volatile than Scandic Hotels Group. It trades about 0.05 of its total potential returns per unit of risk. Scandic Hotels Group is currently generating about 0.15 per unit of volatility. If you would invest 8,476 in Scandic Hotels Group on August 13, 2025 and sell it today you would earn a total of 1,124 from holding Scandic Hotels Group or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beowulf Mining vs. Scandic Hotels Group
Performance |
| Timeline |
| Beowulf Mining |
| Scandic Hotels Group |
Beowulf Mining and Scandic Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and Scandic Hotels
The main advantage of trading using opposite Beowulf Mining and Scandic Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining position performs unexpectedly, Scandic Hotels 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 Scandic Hotels will offset losses from the drop in Scandic Hotels' long position.| Beowulf Mining vs. Ecclesiastical Insurance Office | Beowulf Mining vs. Cairn Homes PLC | Beowulf Mining vs. Aeorema Communications Plc | Beowulf Mining vs. Bigblu Broadband PLC |
| Scandic Hotels vs. Vitec Software Group | Scandic Hotels vs. Spotify Technology SA | Scandic Hotels vs. Axway Software SA | Scandic Hotels vs. Alfa Financial Software |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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