Correlation Between NK Lukoil and Snap On
Can any of the company-specific risk be diversified away by investing in both NK Lukoil 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 NK Lukoil and Snap On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NK Lukoil PAO and Snap On, you can compare the effects of market volatilities on NK Lukoil 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 NK Lukoil with a short position of Snap On. Check out your portfolio center. Please also check ongoing floating volatility patterns of NK Lukoil and Snap On.
Diversification Opportunities for NK Lukoil and Snap On
Pay attention - limited upside
The 3 months correlation between LUKOY and Snap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NK Lukoil PAO and Snap On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap On and NK Lukoil 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 NK Lukoil PAO 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 NK Lukoil i.e., NK Lukoil and Snap On go up and down completely randomly.
Pair Corralation between NK Lukoil and Snap On
If you would invest 22,117 in Snap On on September 4, 2024 and sell it today you would earn a total of 14,571 from holding Snap On or generate 65.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 30.51% |
| Values | Daily Returns |
NK Lukoil PAO vs. Snap On
Performance |
| Timeline |
| NK Lukoil PAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Snap On |
NK Lukoil and Snap On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NK Lukoil and Snap On
The main advantage of trading using opposite NK Lukoil and Snap On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NK Lukoil 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.| NK Lukoil vs. Willscot Mobile Mini | NK Lukoil vs. HE Equipment Services | NK Lukoil vs. Playtech plc | NK Lukoil vs. Sonida Senior Living |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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