Correlation Between Snap and FEDEX
Specify exactly 2 symbols:
By analyzing existing cross correlation between Snap Inc and FEDEX P 34, you can compare the effects of market volatilities on Snap and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and FEDEX.
Diversification Opportunities for Snap and FEDEX
Very good diversification
The 3 months correlation between Snap and FEDEX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and FEDEX P 34 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 34 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 34 has no effect on the direction of Snap i.e., Snap and FEDEX go up and down completely randomly.
Pair Corralation between Snap and FEDEX
Given the investment horizon of 90 days Snap Inc is expected to generate 8.34 times more return on investment than FEDEX. However, Snap is 8.34 times more volatile than FEDEX P 34. It trades about 0.11 of its potential returns per unit of risk. FEDEX P 34 is currently generating about -0.16 per unit of risk. If you would invest 1,045 in Snap Inc on August 26, 2024 and sell it today you would earn a total of 97.00 from holding Snap Inc or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. FEDEX P 34
Performance |
| Timeline |
| Snap Inc |
| FEDEX P 34 |
Snap and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and FEDEX
The main advantage of trading using opposite Snap and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.The idea behind Snap Inc and FEDEX P 34 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |