Correlation Between Snap and Advanced Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Snap Inc and Advanced Technology Materials, you can compare the effects of market volatilities on Snap and Advanced Technology 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 Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Advanced Technology.
Diversification Opportunities for Snap and Advanced Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Advanced is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Snap i.e., Snap and Advanced Technology go up and down completely randomly.
Pair Corralation between Snap and Advanced Technology
Given the investment horizon of 90 days Snap is expected to generate 1.84 times less return on investment than Advanced Technology. In addition to that, Snap is 1.06 times more volatile than Advanced Technology Materials. It trades about 0.1 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.19 per unit of volatility. If you would invest 1,029 in Advanced Technology Materials on August 29, 2024 and sell it today you would earn a total of 185.00 from holding Advanced Technology Materials or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. Advanced Technology Materials
Performance |
| Timeline |
| Snap Inc |
| Advanced Technology |
Snap and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Advanced Technology
The main advantage of trading using opposite Snap and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.The idea behind Snap Inc and Advanced Technology Materials 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.| Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Baoshan Iron Steel | Advanced Technology vs. Shandong Gold Mining |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |