Correlation Between Snap and Sogou
Can any of the company-specific risk be diversified away by investing in both Snap and Sogou 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 Sogou into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Sogou Inc, you can compare the effects of market volatilities on Snap and Sogou 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 Sogou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Sogou.
Diversification Opportunities for Snap and Sogou
Pay attention - limited upside
The 3 months correlation between Snap and Sogou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Sogou Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogou Inc 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 Sogou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogou Inc has no effect on the direction of Snap i.e., Snap and Sogou go up and down completely randomly.
Pair Corralation between Snap and Sogou
If you would invest 1,111 in Snap Inc on February 7, 2024 and sell it today you would earn a total of 573.00 from holding Snap Inc or generate 51.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Snap Inc vs. Sogou Inc
Performance |
| Timeline |
| Snap Inc |
| Sogou Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Snap and Sogou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Sogou
The main advantage of trading using opposite Snap and Sogou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Sogou 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 Sogou will offset losses from the drop in Sogou's long position.The idea behind Snap Inc and Sogou Inc 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| 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 | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Transaction History View history of all your transactions and understand their impact on performance |