Correlation Between Shenandoah Telecommunicatio and ScanSource

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

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

Diversification Opportunities for Shenandoah Telecommunicatio and ScanSource

0.21

Correlation Coefficient

Shenandoah Telecommunicatio  ScanSource

Modest diversification

The 3 months correlation between Shenandoah and ScanSource is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shenandoah Telecommunications and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co 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 Shenandoah Telecommunicatio i.e., Shenandoah Telecommunicatio and ScanSource go up and down completely randomly.

Pair Corralation between Shenandoah Telecommunicatio and ScanSource

Given the investment horizon of 90 days Shenandoah Telecommunications Co is expected to generate 1.31 times more return on investment than ScanSource. However, Shenandoah Telecommunicatio is 1.31 times more volatile than ScanSource. It trades about 0.15 of its potential returns per unit of risk. ScanSource is currently generating about 0.12 per unit of risk. If you would invest  1,198  in Shenandoah Telecommunications Co on May 2, 2025 and sell it today you would earn a total of  280.00  from holding Shenandoah Telecommunications Co or generate 23.37% return on investment over 90 days.

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

Shenandoah Telecommunications   vs.  ScanSource

Shenandoah Telecommunicatio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Shenandoah Telecommunications Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Shenandoah Telecommunicatio displayed solid returns over the last few months and may actually be approaching a breakup point.

ScanSource

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, ScanSource exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shenandoah Telecommunicatio and ScanSource

The main advantage of trading using opposite Shenandoah Telecommunicatio and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.