Correlation Between Snap and Inner Mongolia
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By analyzing existing cross correlation between Snap Inc and Inner Mongolia Furui, you can compare the effects of market volatilities on Snap and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Inner Mongolia.
Diversification Opportunities for Snap and Inner Mongolia
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Snap and Inner is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of Snap i.e., Snap and Inner Mongolia go up and down completely randomly.
Pair Corralation between Snap and Inner Mongolia
Given the investment horizon of 90 days Snap Inc is expected to generate 0.65 times more return on investment than Inner Mongolia. However, Snap Inc is 1.53 times less risky than Inner Mongolia. It trades about 0.11 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about -0.03 per unit of risk. If you would invest 942.00 in Snap Inc on August 25, 2024 and sell it today you would earn a total of 200.00 from holding Snap Inc or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.77% |
| Values | Daily Returns |
Snap Inc vs. Inner Mongolia Furui
Performance |
| Timeline |
| Snap Inc |
| Inner Mongolia Furui |
Snap and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Inner Mongolia
The main advantage of trading using opposite Snap and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.The idea behind Snap Inc and Inner Mongolia Furui 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.| Inner Mongolia vs. New Hope Dairy | Inner Mongolia vs. V V Food | Inner Mongolia vs. Bus Online Co | Inner Mongolia vs. Eastroc Beverage Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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