Correlation Between Snap and COMERICA
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By analyzing existing cross correlation between Snap Inc and COMERICA INC 4, you can compare the effects of market volatilities on Snap and COMERICA 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 COMERICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and COMERICA.
Diversification Opportunities for Snap and COMERICA
Good diversification
The 3 months correlation between Snap and COMERICA is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and COMERICA INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMERICA INC 4 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 COMERICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMERICA INC 4 has no effect on the direction of Snap i.e., Snap and COMERICA go up and down completely randomly.
Pair Corralation between Snap and COMERICA
Given the investment horizon of 90 days Snap Inc is expected to generate 4.75 times more return on investment than COMERICA. However, Snap is 4.75 times more volatile than COMERICA INC 4. It trades about 0.08 of its potential returns per unit of risk. COMERICA INC 4 is currently generating about 0.16 per unit of risk. If you would invest 1,089 in Snap Inc on August 30, 2024 and sell it today you would earn a total of 72.00 from holding Snap Inc or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Snap Inc vs. COMERICA INC 4
Performance |
| Timeline |
| Snap Inc |
| COMERICA INC 4 |
Snap and COMERICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and COMERICA
The main advantage of trading using opposite Snap and COMERICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, COMERICA 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 COMERICA will offset losses from the drop in COMERICA's long position.The idea behind Snap Inc and COMERICA INC 4 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.| COMERICA vs. Lindblad Expeditions Holdings | COMERICA vs. Videolocity International | COMERICA vs. Mills Music Trust | COMERICA vs. Warner Music Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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