Correlation Between Reklaim and Snipp Interactive

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

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

Diversification Opportunities for Reklaim and Snipp Interactive

0.0

Correlation Coefficient

Reklaim  Snipp Interactive

Pay attention - limited upside

The 3 months correlation between Reklaim and Snipp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Reklaim and Snipp Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snipp Interactive and Reklaim 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 Reklaim 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 Reklaim i.e., Reklaim and Snipp Interactive go up and down completely randomly.

Pair Corralation between Reklaim and Snipp Interactive

Assuming the 90 days trading horizon Reklaim is expected to under-perform the Snipp Interactive. In addition to that, Reklaim is 1.96 times more volatile than Snipp Interactive. It trades about -0.2 of its total potential returns per unit of risk. Snipp Interactive is currently generating about 0.01 per unit of volatility. If you would invest  8.50  in Snipp Interactive on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Snipp Interactive or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Reklaim  vs.  Snipp Interactive

Reklaim

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Reklaim are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal forward indicators, Reklaim may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Snipp Interactive

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Snipp Interactive are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Snipp Interactive may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Reklaim and Snipp Interactive

The main advantage of trading using opposite Reklaim and Snipp Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reklaim 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 Reklaim 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..