Correlation Between ScanSource and Pinterest
Can any of the company-specific risk be diversified away by investing in both ScanSource and Pinterest 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 Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Pinterest, you can compare the effects of market volatilities on ScanSource and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Pinterest.
Diversification Opportunities for ScanSource and Pinterest
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ScanSource and Pinterest is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of ScanSource i.e., ScanSource and Pinterest go up and down completely randomly.
Pair Corralation between ScanSource and Pinterest
Given the investment horizon of 90 days ScanSource is expected to generate 0.48 times more return on investment than Pinterest. However, ScanSource is 2.1 times less risky than Pinterest. It trades about -0.04 of its potential returns per unit of risk. Pinterest is currently generating about -0.09 per unit of risk. If you would invest 4,450 in ScanSource on September 12, 2025 and sell it today you would lose (229.00) from holding ScanSource or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanSource vs. Pinterest
Performance |
| Timeline |
| ScanSource |
ScanSource and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and Pinterest
The main advantage of trading using opposite ScanSource and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| ScanSource vs. NETGEAR | ScanSource vs. Magic Software Enterprises | ScanSource vs. Stratasys | ScanSource vs. Alpha and Omega |
| Pinterest vs. Twilio Inc | Pinterest vs. Fox Corp Class | Pinterest vs. Telus Corp | Pinterest vs. Nebius Group NV |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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