Correlation Between Snap and By Health
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By analyzing existing cross correlation between Snap Inc and By health, you can compare the effects of market volatilities on Snap and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and By Health.
Diversification Opportunities for Snap and By Health
Very weak diversification
The 3 months correlation between Snap and 300146 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Snap i.e., Snap and By Health go up and down completely randomly.
Pair Corralation between Snap and By Health
Given the investment horizon of 90 days Snap Inc is expected to under-perform the By Health. In addition to that, Snap is 1.46 times more volatile than By health. It trades about -0.03 of its total potential returns per unit of risk. By health is currently generating about -0.03 per unit of volatility. If you would invest 1,274 in By health on September 1, 2024 and sell it today you would lose (22.00) from holding By health or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Snap Inc vs. By health
Performance |
| Timeline |
| Snap Inc |
| By health |
Snap and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and By Health
The main advantage of trading using opposite Snap and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.The idea behind Snap Inc and By health 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.| By Health vs. Niutech Environment Technology | By Health vs. Anhui Transport Consulting | By Health vs. Jiujiang Shanshui Technology | By Health vs. Western Superconducting Tech |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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