Correlation Between Snap and RBC Quant
Can any of the company-specific risk be diversified away by investing in both Snap and RBC Quant 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 RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and RBC Quant EAFE, you can compare the effects of market volatilities on Snap and RBC Quant 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 RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and RBC Quant.
Diversification Opportunities for Snap and RBC Quant
Pay attention - limited upside
The 3 months correlation between Snap and RBC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and RBC Quant EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant EAFE 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 RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant EAFE has no effect on the direction of Snap i.e., Snap and RBC Quant go up and down completely randomly.
Pair Corralation between Snap and RBC Quant
Given the investment horizon of 90 days Snap Inc is expected to under-perform the RBC Quant. In addition to that, Snap is 3.57 times more volatile than RBC Quant EAFE. It trades about -0.27 of its total potential returns per unit of risk. RBC Quant EAFE is currently generating about 0.2 per unit of volatility. If you would invest 3,422 in RBC Quant EAFE on November 15, 2025 and sell it today you would earn a total of 367.00 from holding RBC Quant EAFE or generate 10.72% 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. RBC Quant EAFE
Performance |
| Timeline |
| Snap Inc |
| RBC Quant EAFE |
Snap and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and RBC Quant
The main advantage of trading using opposite Snap and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, RBC Quant 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 RBC Quant will offset losses from the drop in RBC Quant's long position.The idea behind Snap Inc and RBC Quant EAFE 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.| RBC Quant vs. RBC Quant EAFE | RBC Quant vs. Purpose Enhanced Dividend | RBC Quant vs. Global X SPTSX | RBC Quant vs. RBC Quant Dividend |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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