Correlation Between IHS Holding and Snipp Interactive
Can any of the company-specific risk be diversified away by investing in both IHS Holding 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 IHS Holding and Snipp Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHS Holding and Snipp Interactive, you can compare the effects of market volatilities on IHS Holding 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 IHS Holding with a short position of Snipp Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and Snipp Interactive.
Diversification Opportunities for IHS Holding and Snipp Interactive
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IHS and Snipp is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and Snipp Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snipp Interactive and IHS Holding 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 IHS Holding 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 IHS Holding i.e., IHS Holding and Snipp Interactive go up and down completely randomly.
Pair Corralation between IHS Holding and Snipp Interactive
Considering the 90-day investment horizon IHS Holding is expected to generate 0.65 times more return on investment than Snipp Interactive. However, IHS Holding is 1.53 times less risky than Snipp Interactive. It trades about 0.14 of its potential returns per unit of risk. Snipp Interactive is currently generating about -0.07 per unit of risk. If you would invest 563.00 in IHS Holding on June 3, 2025 and sell it today you would earn a total of 162.00 from holding IHS Holding or generate 28.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHS Holding vs. Snipp Interactive
Performance |
| Timeline |
| IHS Holding |
| Snipp Interactive |
IHS Holding and Snipp Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHS Holding and Snipp Interactive
The main advantage of trading using opposite IHS Holding and Snipp Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding 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.| IHS Holding vs. Cogent Communications Group | IHS Holding vs. IDT Corporation | IHS Holding vs. Iridium Communications | IHS Holding vs. Cable One |
| Snipp Interactive vs. C Com Satellite Systems | Snipp Interactive vs. illumin Holdings | Snipp Interactive vs. Pivotree | Snipp Interactive vs. Quorum Information Technologies |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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