Correlation Between REINET INVESTMENTS and ScanSource

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

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

Diversification Opportunities for REINET INVESTMENTS and ScanSource

0.14

Correlation Coefficient

REINET INVESTMENTS  ScanSource

Average diversification

The 3 months correlation between REINET and ScanSource is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding REINET INVESTMENTS SCA and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and REINET INVESTMENTS 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 REINET INVESTMENTS SCA 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 REINET INVESTMENTS i.e., REINET INVESTMENTS and ScanSource go up and down completely randomly.

Pair Corralation between REINET INVESTMENTS and ScanSource

Assuming the 90 days horizon REINET INVESTMENTS SCA is expected to generate 1.64 times more return on investment than ScanSource. However, REINET INVESTMENTS is 1.64 times more volatile than ScanSource. It trades about 0.05 of its potential returns per unit of risk. ScanSource is currently generating about -0.06 per unit of risk. If you would invest  2,280  in REINET INVESTMENTS SCA on May 10, 2025 and sell it today you would earn a total of  160.00  from holding REINET INVESTMENTS SCA or generate 7.02% return on investment over 90 days.

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

REINET INVESTMENTS SCA  vs.  ScanSource

REINET INVESTMENTS SCA

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in REINET INVESTMENTS SCA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, REINET INVESTMENTS may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with REINET INVESTMENTS and ScanSource

The main advantage of trading using opposite REINET INVESTMENTS and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REINET INVESTMENTS 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 REINET INVESTMENTS SCA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.