Correlation Between Scandinavian Tobacco and Maplebear

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

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

Diversification Opportunities for Scandinavian Tobacco and Maplebear

-0.12

Correlation Coefficient

Scandinavian Tobacco  Maplebear

Good diversification

The 3 months correlation between Scandinavian and Maplebear is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and Maplebear go up and down completely randomly.

Pair Corralation between Scandinavian Tobacco and Maplebear

Assuming the 90 days horizon Scandinavian Tobacco Group is expected to generate 0.56 times more return on investment than Maplebear. However, Scandinavian Tobacco Group is 1.79 times less risky than Maplebear. It trades about -0.06 of its potential returns per unit of risk. Maplebear is currently generating about -0.04 per unit of risk. If you would invest  1,475  in Scandinavian Tobacco Group on May 25, 2025 and sell it today you would lose (86.00) from holding Scandinavian Tobacco Group or give up 5.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Scandinavian Tobacco Group  vs.  Maplebear

Scandinavian Tobacco

Risk-Adjusted Performance

Weakest

Over the last 90 days Scandinavian Tobacco Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Scandinavian Tobacco is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Maplebear

Risk-Adjusted Performance

Weakest

Over the last 90 days Maplebear has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Scandinavian Tobacco and Maplebear

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

The idea behind Scandinavian Tobacco Group and Maplebear 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.