Correlation Between ScanSource and CaliberCos

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

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

Diversification Opportunities for ScanSource and CaliberCos

-0.19

Correlation Coefficient

ScanSource  CaliberCos

Good diversification

The 3 months correlation between ScanSource and CaliberCos is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A and ScanSource 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 ScanSource are associated (or correlated) with CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of ScanSource i.e., ScanSource and CaliberCos go up and down completely randomly.

Pair Corralation between ScanSource and CaliberCos

Given the investment horizon of 90 days ScanSource is expected to generate 0.22 times more return on investment than CaliberCos. However, ScanSource is 4.59 times less risky than CaliberCos. It trades about 0.08 of its potential returns per unit of risk. CaliberCos Class A is currently generating about -0.07 per unit of risk. If you would invest  3,980  in ScanSource on May 22, 2025 and sell it today you would earn a total of  326.00  from holding ScanSource or generate 8.19% return on investment over 90 days.

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

ScanSource  vs.  CaliberCos Class A

ScanSource

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, ScanSource may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CaliberCos Class A

Risk-Adjusted Performance

Weakest

Over the last 90 days CaliberCos Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with ScanSource and CaliberCos

The main advantage of trading using opposite ScanSource and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, CaliberCos 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 CaliberCos will offset losses from the drop in CaliberCos' long position.

The idea behind ScanSource and CaliberCos Class A 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.

Check out your portfolio center.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.