Correlation Between Snap On and China Clean
Can any of the company-specific risk be diversified away by investing in both Snap On and China Clean 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 Snap On and China Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap On and China Clean Energy, you can compare the effects of market volatilities on Snap On and China Clean 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 Snap On with a short position of China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap On and China Clean.
Diversification Opportunities for Snap On and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Snap and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Snap On and China Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Clean Energy and Snap On 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 Snap On are associated (or correlated) with China Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Clean Energy has no effect on the direction of Snap On i.e., Snap On and China Clean go up and down completely randomly.
Pair Corralation between Snap On and China Clean
If you would invest 34,543 in Snap On on October 25, 2024 and sell it today you would earn a total of 617.00 from holding Snap On or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Snap On vs. China Clean Energy
Performance |
| Timeline |
| Snap On |
| China Clean Energy |
Snap On and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap On and China Clean
The main advantage of trading using opposite Snap On and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap On position performs unexpectedly, China Clean 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 China Clean will offset losses from the drop in China Clean's long position.| Snap On vs. Lincoln Electric Holdings | Snap On vs. Timken Company | Snap On vs. Kennametal | Snap On vs. Toro Co |
| China Clean vs. Boston Omaha Corp | China Clean vs. Jerash Holdings | China Clean vs. Gildan Activewear | China Clean vs. Victorias Secret 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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