Correlation Between Mannatech Incorporated and Snap On
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated 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 Mannatech Incorporated and Snap On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Snap On, you can compare the effects of market volatilities on Mannatech Incorporated 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 Mannatech Incorporated with a short position of Snap On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Snap On.
Diversification Opportunities for Mannatech Incorporated and Snap On
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mannatech and Snap is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Snap On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap On and Mannatech Incorporated 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 Mannatech Incorporated 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 Mannatech Incorporated i.e., Mannatech Incorporated and Snap On go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Snap On
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 40.49 times more return on investment than Snap On. However, Mannatech Incorporated is 40.49 times more volatile than Snap On. It trades about 0.05 of its potential returns per unit of risk. Snap On is currently generating about 0.07 per unit of risk. If you would invest 1,180 in Mannatech Incorporated on September 12, 2024 and sell it today you would lose (3.00) from holding Mannatech Incorporated or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.05% |
| Values | Daily Returns |
Mannatech Incorporated vs. Snap On
Performance |
| Timeline |
| Mannatech Incorporated |
| Snap On |
Mannatech Incorporated and Snap On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Snap On
The main advantage of trading using opposite Mannatech Incorporated and Snap On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated 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.| Mannatech Incorporated vs. Edgewell Personal Care | Mannatech Incorporated vs. Inter Parfums | Mannatech Incorporated vs. Nu Skin Enterprises | Mannatech Incorporated vs. Helen of Troy |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |