Correlation Between PC Connection and Snap One
Can any of the company-specific risk be diversified away by investing in both PC Connection and Snap One 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 PC Connection and Snap One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PC Connection and Snap One Holdings, you can compare the effects of market volatilities on PC Connection and Snap One 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 PC Connection with a short position of Snap One. Check out your portfolio center. Please also check ongoing floating volatility patterns of PC Connection and Snap One.
Diversification Opportunities for PC Connection and Snap One
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CNXN and Snap is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PC Connection and Snap One Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap One Holdings and PC Connection 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 PC Connection are associated (or correlated) with Snap One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap One Holdings has no effect on the direction of PC Connection i.e., PC Connection and Snap One go up and down completely randomly.
Pair Corralation between PC Connection and Snap One
If you would invest 6,952 in PC Connection on August 27, 2024 and sell it today you would earn a total of 322.00 from holding PC Connection or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PC Connection vs. Snap One Holdings
Performance |
| Timeline |
| PC Connection |
| Snap One Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PC Connection and Snap One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PC Connection and Snap One
The main advantage of trading using opposite PC Connection and Snap One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PC Connection position performs unexpectedly, Snap One 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 One will offset losses from the drop in Snap One's long position.| PC Connection vs. ScanSource | PC Connection vs. Insight Enterprises | PC Connection vs. Avnet Inc | PC Connection vs. Synnex |
| Snap One vs. Climb Global Solutions | Snap One vs. Insight Enterprises | Snap One vs. ScanSource | Snap One vs. Synnex |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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