Correlation Between Snap and INTERNATIONAL
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By analyzing existing cross correlation between Snap Inc and INTERNATIONAL BUSINESS MACHS, you can compare the effects of market volatilities on Snap and 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 INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and INTERNATIONAL.
Diversification Opportunities for Snap and INTERNATIONAL
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Snap and INTERNATIONAL is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and INTERNATIONAL BUSINESS MACHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BUSINESS 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 INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BUSINESS has no effect on the direction of Snap i.e., Snap and INTERNATIONAL go up and down completely randomly.
Pair Corralation between Snap and INTERNATIONAL
Given the investment horizon of 90 days Snap Inc is expected to generate 5.19 times more return on investment than INTERNATIONAL. However, Snap is 5.19 times more volatile than INTERNATIONAL BUSINESS MACHS. It trades about 0.03 of its potential returns per unit of risk. INTERNATIONAL BUSINESS MACHS is currently generating about -0.01 per unit of risk. If you would invest 1,010 in Snap Inc on August 25, 2024 and sell it today you would earn a total of 132.00 from holding Snap Inc or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.59% |
| Values | Daily Returns |
Snap Inc vs. INTERNATIONAL BUSINESS MACHS
Performance |
| Timeline |
| Snap Inc |
| INTERNATIONAL BUSINESS |
Snap and INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and INTERNATIONAL
The main advantage of trading using opposite Snap and INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, 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 INTERNATIONAL will offset losses from the drop in INTERNATIONAL's long position.The idea behind Snap Inc and INTERNATIONAL BUSINESS MACHS 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.| INTERNATIONAL vs. NiSource | INTERNATIONAL vs. Kenon Holdings | INTERNATIONAL vs. Kinetik Holdings | INTERNATIONAL vs. Weibo Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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