Correlation Between Snap and Canuc Resources
Can any of the company-specific risk be diversified away by investing in both Snap and Canuc Resources 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 Canuc Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Canuc Resources Corp, you can compare the effects of market volatilities on Snap and Canuc Resources 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 Canuc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Canuc Resources.
Diversification Opportunities for Snap and Canuc Resources
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Snap and Canuc is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Canuc Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canuc Resources Corp 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 Canuc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canuc Resources Corp has no effect on the direction of Snap i.e., Snap and Canuc Resources go up and down completely randomly.
Pair Corralation between Snap and Canuc Resources
Given the investment horizon of 90 days Snap Inc is expected to generate 0.32 times more return on investment than Canuc Resources. However, Snap Inc is 3.11 times less risky than Canuc Resources. It trades about 0.13 of its potential returns per unit of risk. Canuc Resources Corp is currently generating about 0.03 per unit of risk. If you would invest 922.00 in Snap Inc on August 29, 2024 and sell it today you would earn a total of 238.00 from holding Snap Inc or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Snap Inc vs. Canuc Resources Corp
Performance |
| Timeline |
| Snap Inc |
| Canuc Resources Corp |
Snap and Canuc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Canuc Resources
The main advantage of trading using opposite Snap and Canuc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Canuc Resources 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 Canuc Resources will offset losses from the drop in Canuc Resources' long position.The idea behind Snap Inc and Canuc Resources Corp 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.| Canuc Resources vs. Wishpond Technologies | Canuc Resources vs. Dream Industrial Real | Canuc Resources vs. Northstar Clean Technologies | Canuc Resources vs. Sparx Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |