Correlation Between Genius Sports and Snap
Can any of the company-specific risk be diversified away by investing in both Genius Sports and Snap 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 Genius Sports and Snap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Sports and Snap Inc, you can compare the effects of market volatilities on Genius Sports and Snap 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 Genius Sports with a short position of Snap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and Snap.
Diversification Opportunities for Genius Sports and Snap
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genius and Snap is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and Snap Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap Inc and Genius Sports 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 Genius Sports are associated (or correlated) with Snap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap Inc has no effect on the direction of Genius Sports i.e., Genius Sports and Snap go up and down completely randomly.
Pair Corralation between Genius Sports and Snap
Given the investment horizon of 90 days Genius Sports is expected to generate 0.88 times more return on investment than Snap. However, Genius Sports is 1.13 times less risky than Snap. It trades about 0.21 of its potential returns per unit of risk. Snap Inc is currently generating about -0.05 per unit of risk. If you would invest 932.00 in Genius Sports on June 7, 2025 and sell it today you would earn a total of 418.00 from holding Genius Sports or generate 44.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genius Sports vs. Snap Inc
Performance |
| Timeline |
| Genius Sports |
| Snap Inc |
Genius Sports and Snap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Sports and Snap
The main advantage of trading using opposite Genius Sports and Snap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Sports position performs unexpectedly, Snap 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 Snap will offset losses from the drop in Snap's long position.| Genius Sports vs. Vivid Seats | Genius Sports vs. MediaAlpha | Genius Sports vs. Getty Images Holdings | Genius Sports vs. Shutterstock |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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