Correlation Between Snap and Kingsignal Technology
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By analyzing existing cross correlation between Snap Inc and Kingsignal Technology Co, you can compare the effects of market volatilities on Snap and Kingsignal 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 Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Kingsignal Technology.
Diversification Opportunities for Snap and Kingsignal Technology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Kingsignal is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal 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 Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Snap i.e., Snap and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Snap and Kingsignal Technology
Given the investment horizon of 90 days Snap Inc is expected to generate 0.97 times more return on investment than Kingsignal Technology. However, Snap Inc is 1.03 times less risky than Kingsignal Technology. It trades about 0.03 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.03 per unit of risk. If you would invest 930.00 in Snap Inc on August 28, 2024 and sell it today you would earn a total of 230.00 from holding Snap Inc or generate 24.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.16% |
| Values | Daily Returns |
Snap Inc vs. Kingsignal Technology Co
Performance |
| Timeline |
| Snap Inc |
| Kingsignal Technology |
Snap and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Kingsignal Technology
The main advantage of trading using opposite Snap and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Kingsignal 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.The idea behind Snap Inc and Kingsignal Technology 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.| Kingsignal Technology vs. Cowealth Medical China | Kingsignal Technology vs. Western Metal Materials | Kingsignal Technology vs. Tianshan Aluminum Group | Kingsignal Technology vs. Shanghai Yanpu Metal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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