Correlation Between Snipp Interactive and JCDecaux

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

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

Diversification Opportunities for Snipp Interactive and JCDecaux

-0.08

Correlation Coefficient

Snipp Interactive  JCDecaux

Good diversification

The 3 months correlation between Snipp and JCDecaux is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Snipp Interactive and JCDecaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCDecaux SA 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 JCDecaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCDecaux SA has no effect on the direction of Snipp Interactive i.e., Snipp Interactive and JCDecaux go up and down completely randomly.

Pair Corralation between Snipp Interactive and JCDecaux

Assuming the 90 days horizon Snipp Interactive is expected to under-perform the JCDecaux. In addition to that, Snipp Interactive is 15.5 times more volatile than JCDecaux SA. It trades about -0.05 of its total potential returns per unit of risk. JCDecaux SA is currently generating about 0.16 per unit of volatility. If you would invest  1,517  in JCDecaux SA on December 5, 2024 and sell it today you would earn a total of  26.00  from holding JCDecaux SA or generate 1.71% return on investment over 90 days.

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

Snipp Interactive  vs.  JCDecaux SA

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.

JCDecaux SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JCDecaux SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, JCDecaux is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Snipp Interactive and JCDecaux

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

The idea behind Snipp Interactive and JCDecaux SA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.