Correlation Between Huize Holding and Snap
Can any of the company-specific risk be diversified away by investing in both Huize Holding 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 Huize Holding and Snap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huize Holding and Snap Inc, you can compare the effects of market volatilities on Huize Holding 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 Huize Holding with a short position of Snap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huize Holding and Snap.
Diversification Opportunities for Huize Holding and Snap
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huize and Snap is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Huize Holding and Snap Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap Inc and Huize Holding 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 Huize Holding 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 Huize Holding i.e., Huize Holding and Snap go up and down completely randomly.
Pair Corralation between Huize Holding and Snap
Given the investment horizon of 90 days Huize Holding is expected to under-perform the Snap. In addition to that, Huize Holding is 1.84 times more volatile than Snap Inc. It trades about -0.15 of its total potential returns per unit of risk. Snap Inc is currently generating about -0.03 per unit of volatility. If you would invest 1,216 in Snap Inc on September 1, 2024 and sell it today you would lose (35.00) from holding Snap Inc or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huize Holding vs. Snap Inc
Performance |
| Timeline |
| Huize Holding |
| Snap Inc |
Huize Holding and Snap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huize Holding and Snap
The main advantage of trading using opposite Huize Holding and Snap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huize Holding 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.| Huize Holding vs. CorVel Corp | Huize Holding vs. Erie Indemnity | Huize Holding vs. Crawford Company | Huize Holding vs. eHealth |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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