Correlation Between Mercurity Fintech and ScanSource

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

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

Diversification Opportunities for Mercurity Fintech and ScanSource

-0.72

Correlation Coefficient

Mercurity Fintech  ScanSource

Pay attention - limited upside

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

Pair Corralation between Mercurity Fintech and ScanSource

Considering the 90-day investment horizon Mercurity Fintech is expected to generate 3.93 times less return on investment than ScanSource. In addition to that, Mercurity Fintech is 4.04 times more volatile than ScanSource. It trades about 0.02 of its total potential returns per unit of risk. ScanSource is currently generating about 0.24 per unit of volatility. If you would invest  3,122  in ScanSource on April 20, 2025 and sell it today you would earn a total of  931.00  from holding ScanSource or generate 29.82% return on investment over 90 days.

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

Mercurity Fintech Holding  vs.  ScanSource

Mercurity Fintech Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mercurity Fintech Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Mercurity Fintech may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 Mercurity Fintech and ScanSource

The main advantage of trading using opposite Mercurity Fintech and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech 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 Mercurity Fintech 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.