Correlation Between Snap and Agat Ejendomme
Can any of the company-specific risk be diversified away by investing in both Snap and Agat Ejendomme 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 Agat Ejendomme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Agat Ejendomme AS, you can compare the effects of market volatilities on Snap and Agat Ejendomme 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 Agat Ejendomme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Agat Ejendomme.
Diversification Opportunities for Snap and Agat Ejendomme
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Snap and Agat is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Agat Ejendomme AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agat Ejendomme AS 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 Agat Ejendomme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agat Ejendomme AS has no effect on the direction of Snap i.e., Snap and Agat Ejendomme go up and down completely randomly.
Pair Corralation between Snap and Agat Ejendomme
Given the investment horizon of 90 days Snap Inc is expected to generate 2.07 times more return on investment than Agat Ejendomme. However, Snap is 2.07 times more volatile than Agat Ejendomme AS. It trades about -0.03 of its potential returns per unit of risk. Agat Ejendomme AS is currently generating about -0.32 per unit of risk. If you would invest 1,216 in Snap Inc on September 1, 2024 and sell it today you would lose (35.00) from holding Snap Inc or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Snap Inc vs. Agat Ejendomme AS
Performance |
| Timeline |
| Snap Inc |
| Agat Ejendomme AS |
Snap and Agat Ejendomme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Agat Ejendomme
The main advantage of trading using opposite Snap and Agat Ejendomme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Agat Ejendomme 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 Agat Ejendomme will offset losses from the drop in Agat Ejendomme's long position.The idea behind Snap Inc and Agat Ejendomme AS 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.| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital AS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |