Correlation Between Snap and Limestone Boat
Can any of the company-specific risk be diversified away by investing in both Snap and Limestone Boat 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 Limestone Boat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and The Limestone Boat, you can compare the effects of market volatilities on Snap and Limestone Boat 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 Limestone Boat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Limestone Boat.
Diversification Opportunities for Snap and Limestone Boat
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Snap and Limestone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and The Limestone Boat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limestone Boat 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 Limestone Boat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limestone Boat has no effect on the direction of Snap i.e., Snap and Limestone Boat go up and down completely randomly.
Pair Corralation between Snap and Limestone Boat
If you would invest 1,027 in Snap Inc on August 25, 2024 and sell it today you would earn a total of 115.00 from holding Snap Inc or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. The Limestone Boat
Performance |
| Timeline |
| Snap Inc |
| Limestone Boat |
Snap and Limestone Boat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Limestone Boat
The main advantage of trading using opposite Snap and Limestone Boat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Limestone Boat 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 Limestone Boat will offset losses from the drop in Limestone Boat's long position.The idea behind Snap Inc and The Limestone Boat 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.| Limestone Boat vs. Formula Systems 1985 | Limestone Boat vs. BitFrontier Capital Holdings | Limestone Boat vs. Netflix | Limestone Boat vs. Cerberus Cyber Sentinel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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