Correlation Between Snap On and Performant Healthcare,

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

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

Diversification Opportunities for Snap On and Performant Healthcare,

0.14

Correlation Coefficient

Snap On  Performant Healthcare,

Average diversification

The 3 months correlation between Snap and Performant is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Snap On and Performant Healthcare, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performant Healthcare, 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 Performant Healthcare,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performant Healthcare, has no effect on the direction of Snap On i.e., Snap On and Performant Healthcare, go up and down completely randomly.

Pair Corralation between Snap On and Performant Healthcare,

Considering the 90-day investment horizon Snap On is expected to generate 0.35 times more return on investment than Performant Healthcare,. However, Snap On is 2.84 times less risky than Performant Healthcare,. It trades about -0.05 of its potential returns per unit of risk. Performant Healthcare, is currently generating about -0.07 per unit of risk. If you would invest  34,660  in Snap On on December 17, 2024 and sell it today you would lose (1,476) from holding Snap On or give up 4.26% of portfolio value over 90 days.

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

Snap On  vs.  Performant Healthcare,

Snap On

Risk-Adjusted Performance

Very Weak

Over the last 90 days Snap On has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Snap On is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Performant Healthcare,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Performant Healthcare, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Snap On and Performant Healthcare,

The main advantage of trading using opposite Snap On and Performant Healthcare, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap On position performs unexpectedly, Performant Healthcare, 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 Performant Healthcare, will offset losses from the drop in Performant Healthcare,'s long position.

The idea behind Snap On and Performant Healthcare, 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.