Correlation Between Snap and InTest
Can any of the company-specific risk be diversified away by investing in both Snap and InTest 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 InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and inTest, you can compare the effects of market volatilities on Snap and InTest 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 InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and InTest.
Diversification Opportunities for Snap and InTest
Excellent diversification
The 3 months correlation between Snap and InTest is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Snap i.e., Snap and InTest go up and down completely randomly.
Pair Corralation between Snap and InTest
Given the investment horizon of 90 days Snap Inc is expected to under-perform the InTest. But the stock apears to be less risky and, when comparing its historical volatility, Snap Inc is 1.21 times less risky than InTest. The stock trades about -0.26 of its potential returns per unit of risk. The inTest is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 760.00 in inTest on November 13, 2025 and sell it today you would earn a total of 287.00 from holding inTest or generate 37.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. inTest
Performance |
| Timeline |
| Snap Inc |
| inTest |
Snap and InTest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and InTest
The main advantage of trading using opposite Snap and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.The idea behind Snap Inc and inTest 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.| InTest vs. Amtech Systems | InTest vs. MagnaChip Semiconductor | InTest vs. QuickLogic | InTest vs. Mobix Labs |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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