Correlation Between Snap and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Snap and Mainstay Fiera 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 Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Mainstay Fiera Smid, you can compare the effects of market volatilities on Snap and Mainstay Fiera 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 Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Mainstay Fiera.
Diversification Opportunities for Snap and Mainstay Fiera
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snap and Mainstay is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid 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 Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Snap i.e., Snap and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Snap and Mainstay Fiera
Given the investment horizon of 90 days Snap Inc is expected to generate 3.69 times more return on investment than Mainstay Fiera. However, Snap is 3.69 times more volatile than Mainstay Fiera Smid. It trades about 0.03 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about 0.05 per unit of risk. If you would invest 930.00 in Snap Inc on August 28, 2024 and sell it today you would earn a total of 230.00 from holding Snap Inc or generate 24.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 68.69% |
| Values | Daily Returns |
Snap Inc vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Snap Inc |
| Mainstay Fiera Smid |
Snap and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Mainstay Fiera
The main advantage of trading using opposite Snap and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Mainstay Fiera 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 Mainstay Fiera will offset losses from the drop in Mainstay Fiera's long position.The idea behind Snap Inc and Mainstay Fiera Smid 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.| Mainstay Fiera vs. Mainstay High Yield | Mainstay Fiera vs. Mainstay Tax Free | Mainstay Fiera vs. Mainstay Income Builder | Mainstay Fiera vs. Mainstay Large Cap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |