Correlation Between Snap and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Snap and Affimed NV 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 Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Affimed NV, you can compare the effects of market volatilities on Snap and Affimed NV 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 Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Affimed NV.
Diversification Opportunities for Snap and Affimed NV
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Snap and Affimed is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV 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 Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Snap i.e., Snap and Affimed NV go up and down completely randomly.
Pair Corralation between Snap and Affimed NV
Given the investment horizon of 90 days Snap Inc is expected to generate 0.54 times more return on investment than Affimed NV. However, Snap Inc is 1.86 times less risky than Affimed NV. It trades about -0.11 of its potential returns per unit of risk. Affimed NV is currently generating about -0.1 per unit of risk. If you would invest 1,262 in Snap Inc on August 31, 2024 and sell it today you would lose (101.00) from holding Snap Inc or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. Affimed NV
Performance |
| Timeline |
| Snap Inc |
| Affimed NV |
Snap and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Affimed NV
The main advantage of trading using opposite Snap and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.The idea behind Snap Inc and Affimed NV 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.| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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