Correlation Between Snap One and PC Connection

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

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

Diversification Opportunities for Snap One and PC Connection

0.0

Correlation Coefficient

Snap One  PC Connection

Pay attention - limited upside

The 3 months correlation between Snap and CNXN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Snap One Holdings and PC Connection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PC Connection and Snap One 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 One Holdings are associated (or correlated) with PC Connection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PC Connection has no effect on the direction of Snap One i.e., Snap One and PC Connection go up and down completely randomly.

Pair Corralation between Snap One and PC Connection

If you would invest (100.00) in Snap One Holdings on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Snap One Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Snap One Holdings  vs.  PC Connection

Snap One Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Snap One Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Snap One is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

PC Connection

Risk-Adjusted Performance

Very Weak

Over the last 90 days PC Connection has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Snap One and PC Connection

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

The idea behind Snap One Holdings and PC Connection 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.