Correlation Between UNIPHAR PLC and ScanSource

Can any of the company-specific risk be diversified away by investing in both UNIPHAR PLC 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 UNIPHAR PLC and ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UNIPHAR PLC EO and ScanSource, you can compare the effects of market volatilities on UNIPHAR PLC 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 UNIPHAR PLC with a short position of ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIPHAR PLC and ScanSource.

Diversification Opportunities for UNIPHAR PLC and ScanSource

0.06

Correlation Coefficient

UNIPHAR PLC  ScanSource

Significant diversification

The 3 months correlation between UNIPHAR and ScanSource is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding UNIPHAR PLC EO and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and UNIPHAR PLC 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 UNIPHAR PLC EO 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 UNIPHAR PLC i.e., UNIPHAR PLC and ScanSource go up and down completely randomly.

Pair Corralation between UNIPHAR PLC and ScanSource

Assuming the 90 days horizon UNIPHAR PLC EO is expected to generate 1.11 times more return on investment than ScanSource. However, UNIPHAR PLC is 1.11 times more volatile than ScanSource. It trades about 0.09 of its potential returns per unit of risk. ScanSource is currently generating about 0.05 per unit of risk. If you would invest  345.00  in UNIPHAR PLC EO on May 25, 2025 and sell it today you would earn a total of  39.00  from holding UNIPHAR PLC EO or generate 11.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

UNIPHAR PLC EO  vs.  ScanSource

UNIPHAR PLC EO

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in UNIPHAR PLC EO are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, UNIPHAR PLC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ScanSource

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ScanSource is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with UNIPHAR PLC and ScanSource

The main advantage of trading using opposite UNIPHAR PLC and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIPHAR PLC 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.

The idea behind UNIPHAR PLC EO and ScanSource 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.