Correlation Between Snap On and Country Garden
Can any of the company-specific risk be diversified away by investing in both Snap On and Country Garden 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 Country Garden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap On and Country Garden Holdings, you can compare the effects of market volatilities on Snap On and Country Garden 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 Country Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap On and Country Garden.
Diversification Opportunities for Snap On and Country Garden
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Snap and Country is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Snap On and Country Garden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Garden Holdings 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 Country Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Garden Holdings has no effect on the direction of Snap On i.e., Snap On and Country Garden go up and down completely randomly.
Pair Corralation between Snap On and Country Garden
If you would invest 34,365 in Snap On on October 21, 2024 and sell it today you would earn a total of 485.00 from holding Snap On or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Snap On vs. Country Garden Holdings
Performance |
| Timeline |
| Snap On |
| Country Garden Holdings |
Snap On and Country Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap On and Country Garden
The main advantage of trading using opposite Snap On and Country Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap On position performs unexpectedly, Country Garden 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 Country Garden will offset losses from the drop in Country Garden's long position.| Snap On vs. Lincoln Electric Holdings | Snap On vs. Timken Company | Snap On vs. Kennametal | Snap On vs. Toro Co |
| Country Garden vs. flyExclusive, | Country Garden vs. Snap On | Country Garden vs. World Houseware Limited | Country Garden vs. Beauty Health 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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