Correlation Between ScanSource and Mako Mining

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

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

Diversification Opportunities for ScanSource and Mako Mining

0.46

Correlation Coefficient

ScanSource  Mako Mining

Very weak diversification

The 3 months correlation between ScanSource and Mako is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp 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 Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of ScanSource i.e., ScanSource and Mako Mining go up and down completely randomly.

Pair Corralation between ScanSource and Mako Mining

Given the investment horizon of 90 days ScanSource is expected to generate 2.4 times less return on investment than Mako Mining. In addition to that, ScanSource is 1.0 times more volatile than Mako Mining Corp. It trades about 0.06 of its total potential returns per unit of risk. Mako Mining Corp is currently generating about 0.14 per unit of volatility. If you would invest  350.00  in Mako Mining Corp on May 24, 2025 and sell it today you would earn a total of  71.00  from holding Mako Mining Corp or generate 20.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

ScanSource  vs.  Mako Mining Corp

ScanSource

Risk-Adjusted Performance

Weakest

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 unfluctuating basic indicators, ScanSource may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Mako Mining Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mako Mining Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Mako Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ScanSource and Mako Mining

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

The idea behind ScanSource and Mako Mining Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.