Correlation Between ScanSource and Humatech

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

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

Diversification Opportunities for ScanSource and Humatech

0.0

Correlation Coefficient

ScanSource  Humatech

Pay attention - limited upside

The 3 months correlation between ScanSource and Humatech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Humatech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humatech 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 Humatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humatech has no effect on the direction of ScanSource i.e., ScanSource and Humatech go up and down completely randomly.

Pair Corralation between ScanSource and Humatech

If you would invest  4,048  in ScanSource on May 19, 2025 and sell it today you would earn a total of  212.00  from holding ScanSource or generate 5.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

ScanSource  vs.  Humatech

ScanSource

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, ScanSource is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Humatech

Risk-Adjusted Performance

Weakest

Over the last 90 days Humatech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Humatech is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ScanSource and Humatech

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

The idea behind ScanSource and Humatech 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.