Correlation Between Snap and Jiugui Liquor
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By analyzing existing cross correlation between Snap Inc and Jiugui Liquor Co, you can compare the effects of market volatilities on Snap and Jiugui Liquor 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 Snap with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Jiugui Liquor.
Diversification Opportunities for Snap and Jiugui Liquor
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Jiugui is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Snap 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 Snap Inc are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Snap i.e., Snap and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Snap and Jiugui Liquor
Given the investment horizon of 90 days Snap Inc is expected to generate 1.44 times more return on investment than Jiugui Liquor. However, Snap is 1.44 times more volatile than Jiugui Liquor Co. It trades about 0.03 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.02 per unit of risk. If you would invest 1,009 in Snap Inc on September 1, 2024 and sell it today you would earn a total of 172.00 from holding Snap Inc or generate 17.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.24% |
Values | Daily Returns |
Snap Inc vs. Jiugui Liquor Co
Performance |
Timeline |
Snap Inc |
Jiugui Liquor |
Snap and Jiugui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Snap and Jiugui Liquor
The main advantage of trading using opposite Snap and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.The idea behind Snap Inc and Jiugui Liquor Co 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.Jiugui Liquor vs. Ningbo Jintian Copper | Jiugui Liquor vs. Dalian Thermal Power | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Westone Information Industry |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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