Correlation Between Snap and Flat Glass
Specify exactly 2 symbols:
By analyzing existing cross correlation between Snap Inc and Flat Glass Group, you can compare the effects of market volatilities on Snap and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Flat Glass.
Diversification Opportunities for Snap and Flat Glass
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Flat is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Snap i.e., Snap and Flat Glass go up and down completely randomly.
Pair Corralation between Snap and Flat Glass
Given the investment horizon of 90 days Snap Inc is expected to generate 1.13 times more return on investment than Flat Glass. However, Snap is 1.13 times more volatile than Flat Glass Group. It trades about 0.11 of its potential returns per unit of risk. Flat Glass Group is currently generating about 0.01 per unit of risk. If you would invest 1,045 in Snap Inc on August 26, 2024 and sell it today you would earn a total of 97.00 from holding Snap Inc or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. Flat Glass Group
Performance |
| Timeline |
| Snap Inc |
| Flat Glass Group |
Snap and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Flat Glass
The main advantage of trading using opposite Snap and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.The idea behind Snap Inc and Flat Glass Group 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.| Flat Glass vs. Suzhou Weizhixiang Food | Flat Glass vs. Harvest Fund Management | Flat Glass vs. Panda Dairy Corp | Flat Glass vs. HaiXin Foods Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |