Correlation Between Snap and YungShin Global
Can any of the company-specific risk be diversified away by investing in both Snap and YungShin Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Snap and YungShin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and YungShin Global Holding, you can compare the effects of market volatilities on Snap and YungShin Global 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 YungShin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and YungShin Global.
Diversification Opportunities for Snap and YungShin Global
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Snap and YungShin is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and YungShin Global Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YungShin Global Holding 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 YungShin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YungShin Global Holding has no effect on the direction of Snap i.e., Snap and YungShin Global go up and down completely randomly.
Pair Corralation between Snap and YungShin Global
Given the investment horizon of 90 days Snap is expected to generate 1.78 times less return on investment than YungShin Global. In addition to that, Snap is 3.48 times more volatile than YungShin Global Holding. It trades about 0.01 of its total potential returns per unit of risk. YungShin Global Holding is currently generating about 0.07 per unit of volatility. If you would invest 4,690 in YungShin Global Holding on August 25, 2024 and sell it today you would earn a total of 1,100 from holding YungShin Global Holding or generate 23.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.6% |
| Values | Daily Returns |
Snap Inc vs. YungShin Global Holding
Performance |
| Timeline |
| Snap Inc |
| YungShin Global Holding |
Snap and YungShin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and YungShin Global
The main advantage of trading using opposite Snap and YungShin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, YungShin Global 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 YungShin Global will offset losses from the drop in YungShin Global's long position.The idea behind Snap Inc and YungShin Global Holding 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.| YungShin Global vs. Sinphar Pharmaceutical Co | YungShin Global vs. Phytohealth Corp | YungShin Global vs. Excelsior Medical Co | YungShin Global vs. Abnova Taiwan Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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