Correlation Between Snap and SEEK
Can any of the company-specific risk be diversified away by investing in both Snap and SEEK 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 SEEK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and SEEK Limited, you can compare the effects of market volatilities on Snap and SEEK 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 SEEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and SEEK.
Diversification Opportunities for Snap and SEEK
Pay attention - limited upside
The 3 months correlation between Snap and SEEK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and SEEK Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEEK Limited 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 SEEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEEK Limited has no effect on the direction of Snap i.e., Snap and SEEK go up and down completely randomly.
Pair Corralation between Snap and SEEK
If you would invest 0.00 in SEEK Limited on October 23, 2024 and sell it today you would earn a total of 0.00 from holding SEEK Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Snap Inc vs. SEEK Limited
Performance |
| Timeline |
| Snap Inc |
| SEEK Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Snap and SEEK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and SEEK
The main advantage of trading using opposite Snap and SEEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, SEEK 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 SEEK will offset losses from the drop in SEEK's long position.The idea behind Snap Inc and SEEK Limited 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.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |