Correlation Between Ingram Micro and ScanSource

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

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

Diversification Opportunities for Ingram Micro and ScanSource

0.93

Correlation Coefficient

Ingram Micro  ScanSource

Almost no diversification

The 3 months correlation between Ingram and ScanSource is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ingram Micro Holding and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Ingram Micro 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 Ingram Micro Holding 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 Ingram Micro i.e., Ingram Micro and ScanSource go up and down completely randomly.

Pair Corralation between Ingram Micro and ScanSource

Given the investment horizon of 90 days Ingram Micro Holding is expected to generate 1.27 times more return on investment than ScanSource. However, Ingram Micro is 1.27 times more volatile than ScanSource. It trades about 0.2 of its potential returns per unit of risk. ScanSource is currently generating about 0.24 per unit of risk. If you would invest  1,582  in Ingram Micro Holding on April 21, 2025 and sell it today you would earn a total of  487.00  from holding Ingram Micro Holding or generate 30.78% return on investment over 90 days.

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

Ingram Micro Holding  vs.  ScanSource

Ingram Micro Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ingram Micro Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Ingram Micro displayed solid returns over the last few months and may actually be approaching a breakup point.

ScanSource

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 19 (%) 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 Ingram Micro and ScanSource

The main advantage of trading using opposite Ingram Micro and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingram Micro 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 Ingram Micro Holding 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.