Correlation Between Snap and SPECTRA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Snap Inc and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Snap and SPECTRA 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 SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and SPECTRA.
Diversification Opportunities for Snap and SPECTRA
Average diversification
The 3 months correlation between Snap and SPECTRA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS 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 SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Snap i.e., Snap and SPECTRA go up and down completely randomly.
Pair Corralation between Snap and SPECTRA
Given the investment horizon of 90 days Snap Inc is expected to under-perform the SPECTRA. In addition to that, Snap is 10.8 times more volatile than SPECTRA ENERGY PARTNERS. It trades about -0.03 of its total potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about -0.23 per unit of volatility. If you would invest 9,943 in SPECTRA ENERGY PARTNERS on September 1, 2024 and sell it today you would lose (129.00) from holding SPECTRA ENERGY PARTNERS or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Snap Inc vs. SPECTRA ENERGY PARTNERS
Performance |
| Timeline |
| Snap Inc |
| SPECTRA ENERGY PARTNERS |
Snap and SPECTRA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and SPECTRA
The main advantage of trading using opposite Snap and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.The idea behind Snap Inc and SPECTRA ENERGY PARTNERS 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.| SPECTRA vs. Emerson Electric | SPECTRA vs. Mesa Air Group | SPECTRA vs. Allegiant Travel | SPECTRA vs. Air Transport Services |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |