Correlation Between Cresud SACIF and ScanSource

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

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

Diversification Opportunities for Cresud SACIF and ScanSource

-0.26

Correlation Coefficient

Cresud SACIF  ScanSource

Very good diversification

The 3 months correlation between Cresud and ScanSource is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Cresud SACIF 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 Cresud SACIF y 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 Cresud SACIF i.e., Cresud SACIF and ScanSource go up and down completely randomly.

Pair Corralation between Cresud SACIF and ScanSource

Assuming the 90 days horizon Cresud SACIF is expected to generate 39.58 times less return on investment than ScanSource. In addition to that, Cresud SACIF is 1.09 times more volatile than ScanSource. It trades about 0.0 of its total potential returns per unit of risk. ScanSource is currently generating about 0.2 per unit of volatility. If you would invest  3,286  in ScanSource on April 26, 2025 and sell it today you would earn a total of  819.00  from holding ScanSource or generate 24.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Cresud SACIF y  vs.  ScanSource

Cresud SACIF y

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cresud SACIF y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Cresud SACIF is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

ScanSource

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, ScanSource exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cresud SACIF and ScanSource

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

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.