Correlation Between Snap and 26441CAT2
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By analyzing existing cross correlation between Snap Inc and DUKE ENERGY P, you can compare the effects of market volatilities on Snap and 26441CAT2 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 26441CAT2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and 26441CAT2.
Diversification Opportunities for Snap and 26441CAT2
Very good diversification
The 3 months correlation between Snap and 26441CAT2 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and DUKE ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY P 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 26441CAT2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY P has no effect on the direction of Snap i.e., Snap and 26441CAT2 go up and down completely randomly.
Pair Corralation between Snap and 26441CAT2
Given the investment horizon of 90 days Snap Inc is expected to generate 2.88 times more return on investment than 26441CAT2. However, Snap is 2.88 times more volatile than DUKE ENERGY P. It trades about 0.15 of its potential returns per unit of risk. DUKE ENERGY P is currently generating about 0.01 per unit of risk. If you would invest 886.00 in Snap Inc on August 31, 2024 and sell it today you would earn a total of 275.00 from holding Snap Inc or generate 31.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Snap Inc vs. DUKE ENERGY P
Performance |
| Timeline |
| Snap Inc |
| DUKE ENERGY P |
Snap and 26441CAT2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and 26441CAT2
The main advantage of trading using opposite Snap and 26441CAT2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, 26441CAT2 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 26441CAT2 will offset losses from the drop in 26441CAT2's long position.The idea behind Snap Inc and DUKE ENERGY P 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.| 26441CAT2 vs. Cedar Realty Trust | 26441CAT2 vs. RCI Hospitality Holdings | 26441CAT2 vs. GEN Restaurant Group, | 26441CAT2 vs. Dominos Pizza |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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