Correlation Between Scully Royalty and Affinity Beverage

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

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

Diversification Opportunities for Scully Royalty and Affinity Beverage

0.0

Correlation Coefficient

Scully Royalty  Affinity Beverage

Pay attention - limited upside

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

Pair Corralation between Scully Royalty and Affinity Beverage

Considering the 90-day investment horizon Scully Royalty is expected to generate 55.27 times less return on investment than Affinity Beverage. But when comparing it to its historical volatility, Scully Royalty is 32.79 times less risky than Affinity Beverage. It trades about 0.07 of its potential returns per unit of risk. Affinity Beverage Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Affinity Beverage Group on September 9, 2025 and sell it today you would earn a total of  0.00  from holding Affinity Beverage Group or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Scully Royalty  vs.  Affinity Beverage Group

Scully Royalty

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Scully Royalty are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Scully Royalty disclosed solid returns over the last few months and may actually be approaching a breakup point.

Affinity Beverage

Risk-Adjusted Performance

Fair

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

Pair Trading with Scully Royalty and Affinity Beverage

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

The idea behind Scully Royalty and Affinity Beverage Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.