Correlation Between Snap and China Marine
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By analyzing existing cross correlation between Snap Inc and China Marine Information, you can compare the effects of market volatilities on Snap and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and China Marine.
Diversification Opportunities for Snap and China Marine
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and China is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Snap i.e., Snap and China Marine go up and down completely randomly.
Pair Corralation between Snap and China Marine
Given the investment horizon of 90 days Snap Inc is expected to generate 1.48 times more return on investment than China Marine. However, Snap is 1.48 times more volatile than China Marine Information. It trades about 0.03 of its potential returns per unit of risk. China Marine Information is currently generating about 0.02 per unit of risk. If you would invest 1,009 in Snap Inc on September 1, 2024 and sell it today you would earn a total of 172.00 from holding Snap Inc or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.24% |
| Values | Daily Returns |
Snap Inc vs. China Marine Information
Performance |
| Timeline |
| Snap Inc |
| China Marine Information |
Snap and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and China Marine
The main advantage of trading using opposite Snap and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.The idea behind Snap Inc and China Marine Information 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.| China Marine vs. Ming Yang Smart | China Marine vs. 159681 | China Marine vs. 159005 | China Marine 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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