Correlation Between Snap and Malion New
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By analyzing existing cross correlation between Snap Inc and Malion New Materials, you can compare the effects of market volatilities on Snap and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Malion New.
Diversification Opportunities for Snap and Malion New
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Malion is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Snap i.e., Snap and Malion New go up and down completely randomly.
Pair Corralation between Snap and Malion New
Given the investment horizon of 90 days Snap Inc is expected to generate 1.13 times more return on investment than Malion New. However, Snap is 1.13 times more volatile than Malion New Materials. It trades about 0.12 of its potential returns per unit of risk. Malion New Materials is currently generating about 0.09 per unit of risk. If you would invest 1,027 in Snap Inc on August 25, 2024 and sell it today you would earn a total of 115.00 from holding Snap Inc or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Snap Inc vs. Malion New Materials
Performance |
| Timeline |
| Snap Inc |
| Malion New Materials |
Snap and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Malion New
The main advantage of trading using opposite Snap and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.The idea behind Snap Inc and Malion New 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.| Malion New vs. Shenzhen MYS Environmental | Malion New vs. Jiangsu Jinling Sports | Malion New vs. Anhui Gujing Distillery | Malion New vs. Ningbo Ligong Online |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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