Correlation Between Snap and East Money
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By analyzing existing cross correlation between Snap Inc and East Money Information, you can compare the effects of market volatilities on Snap and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and East Money.
Diversification Opportunities for Snap and East Money
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and East is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Snap i.e., Snap and East Money go up and down completely randomly.
Pair Corralation between Snap and East Money
Given the investment horizon of 90 days Snap Inc is expected to under-perform the East Money. But the stock apears to be less risky and, when comparing its historical volatility, Snap Inc is 1.69 times less risky than East Money. The stock trades about -0.03 of its potential returns per unit of risk. The East Money Information is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,319 in East Money Information on September 1, 2024 and sell it today you would earn a total of 407.00 from holding East Money Information or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Snap Inc vs. East Money Information
Performance |
| Timeline |
| Snap Inc |
| East Money Information |
Snap and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and East Money
The main advantage of trading using opposite Snap and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.The idea behind Snap Inc and East Money Information 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.| East Money vs. Cambricon Technologies Corp | East Money vs. Loongson Technology Corp | East Money vs. Shenzhen Fortune Trend | East Money vs. Chongqing Road Bridge |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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