Correlation Between Emerald Expositions and Snipp Interactive

Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and Snipp Interactive 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 Emerald Expositions and Snipp Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Emerald Expositions Events and Snipp Interactive, you can compare the effects of market volatilities on Emerald Expositions and Snipp Interactive 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 Emerald Expositions with a short position of Snipp Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Snipp Interactive.

Diversification Opportunities for Emerald Expositions and Snipp Interactive

0.81

Correlation Coefficient

Emerald Expositions  Snipp Interactive

Very poor diversification

The 3 months correlation between Emerald and Snipp is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Snipp Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snipp Interactive and Emerald Expositions 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 Emerald Expositions Events are associated (or correlated) with Snipp Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snipp Interactive has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and Snipp Interactive go up and down completely randomly.

Pair Corralation between Emerald Expositions and Snipp Interactive

Considering the 90-day investment horizon Emerald Expositions Events is expected to generate 0.61 times more return on investment than Snipp Interactive. However, Emerald Expositions Events is 1.64 times less risky than Snipp Interactive. It trades about -0.13 of its potential returns per unit of risk. Snipp Interactive is currently generating about -0.1 per unit of risk. If you would invest  476.00  in Emerald Expositions Events on December 29, 2024 and sell it today you would lose (86.00) from holding Emerald Expositions Events or give up 18.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Emerald Expositions Events  vs.  Snipp Interactive

Emerald Expositions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Emerald Expositions Events has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Snipp Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Snipp Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Emerald Expositions and Snipp Interactive

The main advantage of trading using opposite Emerald Expositions and Snipp Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, Snipp Interactive 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 Snipp Interactive will offset losses from the drop in Snipp Interactive's long position.

The idea behind Emerald Expositions Events and Snipp Interactive 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.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.