Correlation Between Caspian Services and Snap On

Can any of the company-specific risk be diversified away by investing in both Caspian Services 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 Caspian Services and Snap On into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Caspian Services and Snap On, you can compare the effects of market volatilities on Caspian Services 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 Caspian Services with a short position of Snap On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caspian Services and Snap On.

Diversification Opportunities for Caspian Services and Snap On

-0.09

Correlation Coefficient

Caspian Services  Snap On

Good diversification

The 3 months correlation between Caspian and Snap is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Caspian Services and Snap On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap On and Caspian Services 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 Caspian Services 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 Caspian Services i.e., Caspian Services and Snap On go up and down completely randomly.

Pair Corralation between Caspian Services and Snap On

If you would invest  31,716  in Snap On on May 8, 2025 and sell it today you would earn a total of  491.00  from holding Snap On or generate 1.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Caspian Services  vs.  Snap On

Caspian Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Caspian Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Snap On

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Snap On are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Snap On is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Caspian Services and Snap On

The main advantage of trading using opposite Caspian Services and Snap On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caspian Services 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.

The idea behind Caspian Services and Snap On pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.