Correlation Between ScanSource and Talphera

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

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

Diversification Opportunities for ScanSource and Talphera

-0.24

Correlation Coefficient

ScanSource  Talphera

Very good diversification

The 3 months correlation between ScanSource and Talphera is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Talphera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talphera 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 Talphera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talphera has no effect on the direction of ScanSource i.e., ScanSource and Talphera go up and down completely randomly.

Pair Corralation between ScanSource and Talphera

Given the investment horizon of 90 days ScanSource is expected to generate 0.49 times more return on investment than Talphera. However, ScanSource is 2.02 times less risky than Talphera. It trades about 0.01 of its potential returns per unit of risk. Talphera is currently generating about -0.15 per unit of risk. If you would invest  3,839  in ScanSource on May 8, 2025 and sell it today you would earn a total of  18.00  from holding ScanSource or generate 0.47% return on investment over 90 days.

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

ScanSource  vs.  Talphera

ScanSource

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 1 (%) 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 recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Talphera

Risk-Adjusted Performance

Weakest

Over the last 90 days Talphera has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with ScanSource and Talphera

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

The idea behind ScanSource and Talphera 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.