Correlation Between Intouch Holdings and SNC Former

Can any of the company-specific risk be diversified away by investing in both Intouch Holdings and SNC Former 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 Intouch Holdings and SNC Former into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intouch Holdings Public and SNC Former Public, you can compare the effects of market volatilities on Intouch Holdings and SNC Former 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 Intouch Holdings with a short position of SNC Former. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and SNC Former.

Diversification Opportunities for Intouch Holdings and SNC Former

-0.74

Correlation Coefficient

Intouch Holdings  SNC Former

Pay attention - limited upside

The 3 months correlation between Intouch and SNC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and SNC Former Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNC Former Public and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with SNC Former. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNC Former Public has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and SNC Former go up and down completely randomly.

Pair Corralation between Intouch Holdings and SNC Former

Assuming the 90 days trading horizon Intouch Holdings Public is expected to under-perform the SNC Former. In addition to that, Intouch Holdings is 1.01 times more volatile than SNC Former Public. It trades about -0.07 of its total potential returns per unit of risk. SNC Former Public is currently generating about 0.15 per unit of volatility. If you would invest  530.00  in SNC Former Public on December 24, 2024 and sell it today you would earn a total of  120.00  from holding SNC Former Public or generate 22.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Intouch Holdings Public  vs.  SNC Former Public

Intouch Holdings Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intouch Holdings Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

SNC Former Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SNC Former Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, SNC Former disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intouch Holdings and SNC Former

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

The idea behind Intouch Holdings Public and SNC Former Public 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.