Correlation Between Snap and Elkhorn
Can any of the company-specific risk be diversified away by investing in both Snap and Elkhorn at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Snap and Elkhorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Elkhorn, you can compare the effects of market volatilities on Snap and Elkhorn 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 Elkhorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Elkhorn.
Diversification Opportunities for Snap and Elkhorn
Pay attention - limited upside
The 3 months correlation between Snap and Elkhorn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Elkhorn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkhorn 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 Elkhorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkhorn has no effect on the direction of Snap i.e., Snap and Elkhorn go up and down completely randomly.
Pair Corralation between Snap and Elkhorn
If you would invest 1,004 in Snap Inc on August 31, 2024 and sell it today you would earn a total of 177.00 from holding Snap Inc or generate 17.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Snap Inc vs. Elkhorn
Performance |
| Timeline |
| Snap Inc |
| Elkhorn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Snap and Elkhorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Elkhorn
The main advantage of trading using opposite Snap and Elkhorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Elkhorn 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 Elkhorn will offset losses from the drop in Elkhorn's long position.The idea behind Snap Inc and Elkhorn 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.| Elkhorn vs. Vanguard Total Stock | Elkhorn vs. SPDR SP 500 | Elkhorn vs. iShares Core SP | Elkhorn vs. Vanguard Total Bond |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |