Correlation Between Snap and Panda Financial
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By analyzing existing cross correlation between Snap Inc and Panda Financial Holding, you can compare the effects of market volatilities on Snap and Panda Financial 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 Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Panda Financial.
Diversification Opportunities for Snap and Panda Financial
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Panda is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Panda Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Financial 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 Panda Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Financial Holding has no effect on the direction of Snap i.e., Snap and Panda Financial go up and down completely randomly.
Pair Corralation between Snap and Panda Financial
Given the investment horizon of 90 days Snap Inc is expected to generate 1.35 times more return on investment than Panda Financial. However, Snap is 1.35 times more volatile than Panda Financial Holding. It trades about 0.02 of its potential returns per unit of risk. Panda Financial Holding is currently generating about 0.02 per unit of risk. If you would invest 1,124 in Snap Inc on August 24, 2024 and sell it today you would earn a total of 18.00 from holding Snap Inc or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.9% |
| Values | Daily Returns |
Snap Inc vs. Panda Financial Holding
Performance |
| Timeline |
| Snap Inc |
| Panda Financial Holding |
Snap and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Panda Financial
The main advantage of trading using opposite Snap and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Panda Financial 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 Panda Financial will offset losses from the drop in Panda Financial's long position.The idea behind Snap Inc and Panda Financial 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.| Panda Financial vs. New China Life | Panda Financial vs. Ming Yang Smart | Panda Financial vs. 159005 | Panda Financial vs. Loctek Ergonomic Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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