Correlation Between Snap and PEAK Old
Can any of the company-specific risk be diversified away by investing in both Snap and PEAK Old 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 PEAK Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and PEAK Old, you can compare the effects of market volatilities on Snap and PEAK Old 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 PEAK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and PEAK Old.
Diversification Opportunities for Snap and PEAK Old
Very good diversification
The 3 months correlation between Snap and PEAK is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and PEAK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEAK Old 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 PEAK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEAK Old has no effect on the direction of Snap i.e., Snap and PEAK Old go up and down completely randomly.
Pair Corralation between Snap and PEAK Old
If you would invest 918.00 in Snap Inc on August 28, 2024 and sell it today you would earn a total of 242.00 from holding Snap Inc or generate 26.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Snap Inc vs. PEAK Old
Performance |
| Timeline |
| Snap Inc |
| PEAK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Snap and PEAK Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and PEAK Old
The main advantage of trading using opposite Snap and PEAK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, PEAK Old 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 PEAK Old will offset losses from the drop in PEAK Old's long position.The idea behind Snap Inc and PEAK Old 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.| PEAK Old vs. Welltower | PEAK Old vs. Mid America Apartment Communities | PEAK Old vs. Regency Centers | PEAK Old vs. UDR Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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