Correlation Between Corsair Gaming and ScanSource

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

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

Diversification Opportunities for Corsair Gaming and ScanSource

0.72

Correlation Coefficient

Corsair Gaming  ScanSource

Poor diversification

The 3 months correlation between Corsair and ScanSource is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming i.e., Corsair Gaming and ScanSource go up and down completely randomly.

Pair Corralation between Corsair Gaming and ScanSource

Given the investment horizon of 90 days Corsair Gaming is expected to under-perform the ScanSource. In addition to that, Corsair Gaming is 1.53 times more volatile than ScanSource. It trades about -0.14 of its total potential returns per unit of risk. ScanSource is currently generating about -0.06 per unit of volatility. If you would invest  4,306  in ScanSource on August 19, 2025 and sell it today you would lose (427.00) from holding ScanSource or give up 9.92% of portfolio value over 90 days.

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

Corsair Gaming  vs.  ScanSource

Corsair Gaming

Risk-Adjusted Performance

Weakest

Over the last 90 days Corsair Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Corsair Gaming and ScanSource

The main advantage of trading using opposite Corsair Gaming and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming 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 Corsair Gaming 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.