Correlation Between ANGI Homeservices and Snap
Can any of the company-specific risk be diversified away by investing in both ANGI Homeservices and Snap 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 ANGI Homeservices and Snap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGI Homeservices and Snap Inc, you can compare the effects of market volatilities on ANGI Homeservices and Snap 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 ANGI Homeservices with a short position of Snap. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGI Homeservices and Snap.
Diversification Opportunities for ANGI Homeservices and Snap
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANGI and Snap is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANGI Homeservices and Snap Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap Inc and ANGI Homeservices 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 ANGI Homeservices are associated (or correlated) with Snap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap Inc has no effect on the direction of ANGI Homeservices i.e., ANGI Homeservices and Snap go up and down completely randomly.
Pair Corralation between ANGI Homeservices and Snap
Given the investment horizon of 90 days ANGI Homeservices is expected to under-perform the Snap. In addition to that, ANGI Homeservices is 1.54 times more volatile than Snap Inc. It trades about -0.11 of its total potential returns per unit of risk. Snap Inc is currently generating about 0.07 per unit of volatility. If you would invest 1,015 in Snap Inc on August 24, 2024 and sell it today you would earn a total of 48.00 from holding Snap Inc or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGI Homeservices vs. Snap Inc
Performance |
| Timeline |
| ANGI Homeservices |
| Snap Inc |
ANGI Homeservices and Snap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGI Homeservices and Snap
The main advantage of trading using opposite ANGI Homeservices and Snap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGI Homeservices position performs unexpectedly, Snap 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 Snap will offset losses from the drop in Snap's long position.| ANGI Homeservices vs. Match Group | ANGI Homeservices vs. Outbrain | ANGI Homeservices vs. MediaAlpha | ANGI Homeservices vs. YY Inc Class |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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