Correlation Between Snap and Onfolio Holdings
Can any of the company-specific risk be diversified away by investing in both Snap and Onfolio Holdings 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 Onfolio Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Onfolio Holdings, you can compare the effects of market volatilities on Snap and Onfolio Holdings 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 Onfolio Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Onfolio Holdings.
Diversification Opportunities for Snap and Onfolio Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Snap and Onfolio is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Onfolio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onfolio Holdings 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 Onfolio Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onfolio Holdings has no effect on the direction of Snap i.e., Snap and Onfolio Holdings go up and down completely randomly.
Pair Corralation between Snap and Onfolio Holdings
Given the investment horizon of 90 days Snap Inc is expected to under-perform the Onfolio Holdings. In addition to that, Snap is 1.06 times more volatile than Onfolio Holdings. It trades about -0.16 of its total potential returns per unit of risk. Onfolio Holdings is currently generating about -0.08 per unit of volatility. If you would invest 136.00 in Onfolio Holdings on November 5, 2024 and sell it today you would lose (7.00) from holding Onfolio Holdings or give up 5.15% 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. Onfolio Holdings
Performance |
| Timeline |
| Snap Inc |
| Onfolio Holdings |
Snap and Onfolio Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Onfolio Holdings
The main advantage of trading using opposite Snap and Onfolio Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Onfolio Holdings 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 Onfolio Holdings will offset losses from the drop in Onfolio Holdings' long position.The idea behind Snap Inc and Onfolio Holdings 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.| Onfolio Holdings vs. Vivid Seats | Onfolio Holdings vs. EverQuote Class A | Onfolio Holdings vs. Asset Entities Class | Onfolio Holdings vs. Zhihu Inc ADR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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