Correlation Between CREDIT AGRICOLE and ScanSource

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

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

Diversification Opportunities for CREDIT AGRICOLE and ScanSource

-0.2

Correlation Coefficient

CREDIT AGRICOLE  ScanSource

Good diversification

The 3 months correlation between CREDIT and ScanSource is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT AGRICOLE and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource and CREDIT AGRICOLE 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 CREDIT AGRICOLE 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 CREDIT AGRICOLE i.e., CREDIT AGRICOLE and ScanSource go up and down completely randomly.

Pair Corralation between CREDIT AGRICOLE and ScanSource

Assuming the 90 days trading horizon CREDIT AGRICOLE is expected to generate 0.72 times more return on investment than ScanSource. However, CREDIT AGRICOLE is 1.39 times less risky than ScanSource. It trades about 0.07 of its potential returns per unit of risk. ScanSource is currently generating about -0.09 per unit of risk. If you would invest  1,618  in CREDIT AGRICOLE on May 14, 2025 and sell it today you would earn a total of  84.00  from holding CREDIT AGRICOLE or generate 5.19% return on investment over 90 days.

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

CREDIT AGRICOLE  vs.  ScanSource

CREDIT AGRICOLE

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CREDIT AGRICOLE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CREDIT AGRICOLE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with CREDIT AGRICOLE and ScanSource

The main advantage of trading using opposite CREDIT AGRICOLE and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT AGRICOLE 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 CREDIT AGRICOLE 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.