Correlation Between Snap and Silver Tiger
Can any of the company-specific risk be diversified away by investing in both Snap and Silver Tiger 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 Silver Tiger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Silver Tiger Metals, you can compare the effects of market volatilities on Snap and Silver Tiger 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 Silver Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Silver Tiger.
Diversification Opportunities for Snap and Silver Tiger
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Snap and Silver is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Silver Tiger Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Tiger Metals 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 Silver Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Tiger Metals has no effect on the direction of Snap i.e., Snap and Silver Tiger go up and down completely randomly.
Pair Corralation between Snap and Silver Tiger
Given the investment horizon of 90 days Snap is expected to generate 1.59 times less return on investment than Silver Tiger. But when comparing it to its historical volatility, Snap Inc is 1.37 times less risky than Silver Tiger. It trades about 0.02 of its potential returns per unit of risk. Silver Tiger Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Silver Tiger Metals on November 19, 2024 and sell it today you would earn a total of 1.00 from holding Silver Tiger Metals or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Snap Inc vs. Silver Tiger Metals
Performance |
| Timeline |
| Snap Inc |
| Silver Tiger Metals |
Snap and Silver Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Silver Tiger
The main advantage of trading using opposite Snap and Silver Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Silver Tiger 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 Silver Tiger will offset losses from the drop in Silver Tiger's long position.The idea behind Snap Inc and Silver Tiger Metals 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.| Silver Tiger vs. Defiance Silver Corp | Silver Tiger vs. Summa Silver Corp | Silver Tiger vs. AbraSilver Resource Corp | Silver Tiger vs. Brixton Metals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |