Correlation Between Marine Products and Snam SpA
Can any of the company-specific risk be diversified away by investing in both Marine Products and Snam SpA 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 Marine Products and Snam SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Snam SpA, you can compare the effects of market volatilities on Marine Products and Snam SpA 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 Marine Products with a short position of Snam SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Snam SpA.
Diversification Opportunities for Marine Products and Snam SpA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marine and Snam is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Snam SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snam SpA and Marine Products 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 Marine Products are associated (or correlated) with Snam SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snam SpA has no effect on the direction of Marine Products i.e., Marine Products and Snam SpA go up and down completely randomly.
Pair Corralation between Marine Products and Snam SpA
Considering the 90-day investment horizon Marine Products is expected to generate 0.74 times more return on investment than Snam SpA. However, Marine Products is 1.36 times less risky than Snam SpA. It trades about 0.02 of its potential returns per unit of risk. Snam SpA is currently generating about 0.01 per unit of risk. If you would invest 954.00 in Marine Products on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Marine Products or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Marine Products vs. Snam SpA
Performance |
| Timeline |
| Marine Products |
| Snam SpA |
Marine Products and Snam SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Snam SpA
The main advantage of trading using opposite Marine Products and Snam SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Snam SpA 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 Snam SpA will offset losses from the drop in Snam SpA's long position.| Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies | Marine Products vs. SCOR PK |
| Snam SpA vs. TechnipFMC PLC | Snam SpA vs. Deckers Outdoor | Snam SpA vs. Jackson Financial | Snam SpA vs. OppFi Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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