Correlation Between Snap One and ScanSource

Can any of the company-specific risk be diversified away by investing in both Snap One and ScanSource 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 ScanSource 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 ScanSource, you can compare the effects of market volatilities on Snap One and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap One and ScanSource.

Diversification Opportunities for Snap One and ScanSource

0.0

Correlation Coefficient

Snap One  ScanSource

Pay attention - limited upside

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

Pair Corralation between Snap One and ScanSource

If you would invest (100.00) in Snap One Holdings on December 30, 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.  ScanSource

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.

ScanSource

Risk-Adjusted Performance

Very Weak

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Snap One and ScanSource

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

The idea behind Snap One Holdings and ScanSource 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.