Correlation Between ScanTech and Caesarstone

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

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

Diversification Opportunities for ScanTech and Caesarstone

0.68

Correlation Coefficient

ScanTech  Caesarstone

Poor diversification

The 3 months correlation between ScanTech and Caesarstone is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and Caesarstone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caesarstone and ScanTech 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 ScanTech AI Systems are associated (or correlated) with Caesarstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caesarstone has no effect on the direction of ScanTech i.e., ScanTech and Caesarstone go up and down completely randomly.

Pair Corralation between ScanTech and Caesarstone

Given the investment horizon of 90 days ScanTech AI Systems is expected to under-perform the Caesarstone. In addition to that, ScanTech is 1.19 times more volatile than Caesarstone. It trades about -0.25 of its total potential returns per unit of risk. Caesarstone is currently generating about -0.2 per unit of volatility. If you would invest  301.00  in Caesarstone on April 22, 2025 and sell it today you would lose (133.00) from holding Caesarstone or give up 44.19% of portfolio value over 90 days.

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

ScanTech AI Systems  vs.  Caesarstone

ScanTech AI Systems

Risk-Adjusted Performance

Very Weak

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

Caesarstone

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caesarstone has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with ScanTech and Caesarstone

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

The idea behind ScanTech AI Systems and Caesarstone 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.