Correlation Between Snap and Ssga International
Can any of the company-specific risk be diversified away by investing in both Snap and Ssga International 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 Ssga International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Ssga International Stock, you can compare the effects of market volatilities on Snap and Ssga International 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 Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Ssga International.
Diversification Opportunities for Snap and Ssga International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Snap and Ssga is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock 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 Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Snap i.e., Snap and Ssga International go up and down completely randomly.
Pair Corralation between Snap and Ssga International
Given the investment horizon of 90 days Snap Inc is expected to under-perform the Ssga International. In addition to that, Snap is 4.3 times more volatile than Ssga International Stock. It trades about -0.03 of its total potential returns per unit of risk. Ssga International Stock is currently generating about -0.01 per unit of volatility. If you would invest 1,157 in Ssga International Stock on August 29, 2024 and sell it today you would lose (25.00) from holding Ssga International Stock or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. Ssga International Stock
Performance |
| Timeline |
| Snap Inc |
| Ssga International Stock |
Snap and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Ssga International
The main advantage of trading using opposite Snap and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Ssga International 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 Ssga International will offset losses from the drop in Ssga International's long position.The idea behind Snap Inc and Ssga International Stock 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.| Ssga International vs. HUMANA INC | Ssga International vs. Aquagold International | Ssga International vs. Barloworld Ltd ADR | Ssga International vs. Morningstar Unconstrained Allocation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |