Correlation Between Snap and Qi An
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By analyzing existing cross correlation between Snap Inc and Qi An Xin, you can compare the effects of market volatilities on Snap and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Qi An.
Diversification Opportunities for Snap and Qi An
Poor diversification
The 3 months correlation between Snap and 688561 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Snap i.e., Snap and Qi An go up and down completely randomly.
Pair Corralation between Snap and Qi An
Given the investment horizon of 90 days Snap Inc is expected to under-perform the Qi An. But the stock apears to be less risky and, when comparing its historical volatility, Snap Inc is 1.0 times less risky than Qi An. The stock trades about -0.04 of its potential returns per unit of risk. The Qi An Xin is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,661 in Qi An Xin on August 25, 2024 and sell it today you would earn a total of 483.00 from holding Qi An Xin or generate 18.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Snap Inc vs. Qi An Xin
Performance |
| Timeline |
| Snap Inc |
| Qi An Xin |
Snap and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Qi An
The main advantage of trading using opposite Snap and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.The idea behind Snap Inc and Qi An Xin 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.| Qi An vs. Shenzhen Kexin Communication | Qi An vs. Changchun Faway Automobile | Qi An vs. CICT Mobile Communication | Qi An vs. Shanghai Yanpu Metal |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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