Correlation Between Snap and CodeLab Capital
Can any of the company-specific risk be diversified away by investing in both Snap and CodeLab Capital 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 CodeLab Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and CodeLab Capital AS, you can compare the effects of market volatilities on Snap and CodeLab Capital 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 CodeLab Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and CodeLab Capital.
Diversification Opportunities for Snap and CodeLab Capital
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Snap and CodeLab is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and CodeLab Capital AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CodeLab Capital 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 CodeLab Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CodeLab Capital AS has no effect on the direction of Snap i.e., Snap and CodeLab Capital go up and down completely randomly.
Pair Corralation between Snap and CodeLab Capital
Given the investment horizon of 90 days Snap Inc is expected to under-perform the CodeLab Capital. But the stock apears to be less risky and, when comparing its historical volatility, Snap Inc is 3.18 times less risky than CodeLab Capital. The stock trades about -0.18 of its potential returns per unit of risk. The CodeLab Capital AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 246.00 in CodeLab Capital AS on November 30, 2025 and sell it today you would lose (5.00) from holding CodeLab Capital AS or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. CodeLab Capital AS
Performance |
| Timeline |
| Snap Inc |
| CodeLab Capital AS |
Snap and CodeLab Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and CodeLab Capital
The main advantage of trading using opposite Snap and CodeLab Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, CodeLab Capital 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 CodeLab Capital will offset losses from the drop in CodeLab Capital's long position.The idea behind Snap Inc and CodeLab Capital 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.| CodeLab Capital vs. Haugesund Sparebank | CodeLab Capital vs. Instabank ASA | CodeLab Capital vs. SD Standard Drilling | CodeLab Capital vs. Odfjell Drilling |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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