Correlation Between Snipp Interactive and Fluent
Can any of the company-specific risk be diversified away by investing in both Snipp Interactive and Fluent 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 Snipp Interactive and Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snipp Interactive and Fluent Inc, you can compare the effects of market volatilities on Snipp Interactive and Fluent 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 Snipp Interactive with a short position of Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snipp Interactive and Fluent.
Diversification Opportunities for Snipp Interactive and Fluent
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Snipp and Fluent is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Snipp Interactive and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and Snipp Interactive 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 Snipp Interactive are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Snipp Interactive i.e., Snipp Interactive and Fluent go up and down completely randomly.
Pair Corralation between Snipp Interactive and Fluent
Assuming the 90 days horizon Snipp Interactive is expected to generate 1.29 times more return on investment than Fluent. However, Snipp Interactive is 1.29 times more volatile than Fluent Inc. It trades about 0.02 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.01 per unit of risk. If you would invest 9.28 in Snipp Interactive on September 20, 2024 and sell it today you would lose (2.83) from holding Snipp Interactive or give up 30.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snipp Interactive vs. Fluent Inc
Performance |
| Timeline |
| Snipp Interactive |
| Fluent Inc |
Snipp Interactive and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snipp Interactive and Fluent
The main advantage of trading using opposite Snipp Interactive and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snipp Interactive position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Snipp Interactive vs. Snipp Interactive | Snipp Interactive vs. Boardwalktech Software Corp | Snipp Interactive vs. Social Detention | Snipp Interactive vs. Stereo Vision Entertainment |
| Fluent vs. Mirriad Advertising plc | Fluent vs. INEO Tech Corp | Fluent vs. Kidoz Inc | Fluent vs. Snipp Interactive |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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