Correlation Between Snap and Scandion Oncology
Can any of the company-specific risk be diversified away by investing in both Snap and Scandion Oncology 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 Scandion Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Scandion Oncology AS, you can compare the effects of market volatilities on Snap and Scandion Oncology 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 Scandion Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Scandion Oncology.
Diversification Opportunities for Snap and Scandion Oncology
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Snap and Scandion is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Scandion Oncology AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandion Oncology 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 Scandion Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandion Oncology has no effect on the direction of Snap i.e., Snap and Scandion Oncology go up and down completely randomly.
Pair Corralation between Snap and Scandion Oncology
Given the investment horizon of 90 days Snap Inc is expected to generate 0.46 times more return on investment than Scandion Oncology. However, Snap Inc is 2.16 times less risky than Scandion Oncology. It trades about -0.11 of its potential returns per unit of risk. Scandion Oncology AS is currently generating about -0.33 per unit of risk. If you would invest 1,262 in Snap Inc on August 31, 2024 and sell it today you would lose (101.00) from holding Snap Inc or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. Scandion Oncology AS
Performance |
| Timeline |
| Snap Inc |
| Scandion Oncology |
Snap and Scandion Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Scandion Oncology
The main advantage of trading using opposite Snap and Scandion Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Scandion Oncology 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 Scandion Oncology will offset losses from the drop in Scandion Oncology's long position.The idea behind Snap Inc and Scandion Oncology AS 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.| Scandion Oncology vs. ExpreS2ion Biotech Holding | Scandion Oncology vs. Hansa Biopharma AB | Scandion Oncology vs. Saniona AB | Scandion Oncology vs. Oncopeptides AB |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |