Correlation Between Snap and CI Global
Can any of the company-specific risk be diversified away by investing in both Snap and CI Global 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 CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and CI Global Real, you can compare the effects of market volatilities on Snap and CI Global 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 CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and CI Global.
Diversification Opportunities for Snap and CI Global
Very weak diversification
The 3 months correlation between Snap and CGRA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and CI Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Real 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 CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Real has no effect on the direction of Snap i.e., Snap and CI Global go up and down completely randomly.
Pair Corralation between Snap and CI Global
Given the investment horizon of 90 days Snap Inc is expected to under-perform the CI Global. In addition to that, Snap is 5.4 times more volatile than CI Global Real. It trades about -0.03 of its total potential returns per unit of risk. CI Global Real is currently generating about 0.17 per unit of volatility. If you would invest 1,998 in CI Global Real on August 31, 2024 and sell it today you would earn a total of 318.00 from holding CI Global Real or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.43% |
| Values | Daily Returns |
Snap Inc vs. CI Global Real
Performance |
| Timeline |
| Snap Inc |
| CI Global Real |
Snap and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and CI Global
The main advantage of trading using opposite Snap and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global's long position.The idea behind Snap Inc and CI Global Real 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.| CI Global vs. Brompton Global Dividend | CI Global vs. Brompton European Dividend | CI Global vs. Brompton North American | CI Global vs. Global Healthcare Income |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| 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 | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |