Correlation Between Henderson Investment and Snap On
Can any of the company-specific risk be diversified away by investing in both Henderson Investment and Snap On 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 Henderson Investment and Snap On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson Investment Ltd and Snap On, you can compare the effects of market volatilities on Henderson Investment and Snap On 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 Henderson Investment with a short position of Snap On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Investment and Snap On.
Diversification Opportunities for Henderson Investment and Snap On
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Henderson and Snap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Investment Ltd and Snap On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap On and Henderson Investment 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 Henderson Investment Ltd are associated (or correlated) with Snap On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap On has no effect on the direction of Henderson Investment i.e., Henderson Investment and Snap On go up and down completely randomly.
Pair Corralation between Henderson Investment and Snap On
If you would invest 32,906 in Snap On on September 4, 2024 and sell it today you would earn a total of 3,782 from holding Snap On or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henderson Investment Ltd vs. Snap On
Performance |
| Timeline |
| Henderson Investment |
| Snap On |
Henderson Investment and Snap On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Investment and Snap On
The main advantage of trading using opposite Henderson Investment and Snap On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson Investment position performs unexpectedly, Snap On 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 On will offset losses from the drop in Snap On's long position.| Henderson Investment vs. Snap On | Henderson Investment vs. Acme United | Henderson Investment vs. Empresa Distribuidora y | Henderson Investment vs. Procter Gamble |
| Snap On vs. Lincoln Electric Holdings | Snap On vs. Timken Company | Snap On vs. Kennametal | Snap On vs. Toro Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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