Correlation Between Tianjin Meiteng and Snap On

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Can any of the company-specific risk be diversified away by investing in both Tianjin Meiteng 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 Tianjin Meiteng and Snap On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Meiteng Technology and Snap On, you can compare the effects of market volatilities on Tianjin Meiteng 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 Tianjin Meiteng with a short position of Snap On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Meiteng and Snap On.

Diversification Opportunities for Tianjin Meiteng and Snap On

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Tianjin and Snap is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Meiteng Technology and Snap On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap On and Tianjin Meiteng 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 Tianjin Meiteng Technology 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 Tianjin Meiteng i.e., Tianjin Meiteng and Snap On go up and down completely randomly.

Pair Corralation between Tianjin Meiteng and Snap On

Assuming the 90 days trading horizon Tianjin Meiteng Technology is expected to under-perform the Snap On. In addition to that, Tianjin Meiteng is 1.44 times more volatile than Snap On. It trades about -0.04 of its total potential returns per unit of risk. Snap On is currently generating about 0.13 per unit of volatility. If you would invest  32,492  in Snap On on October 10, 2025 and sell it today you would earn a total of  2,766  from holding Snap On or generate 8.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.39%
ValuesDaily Returns

Tianjin Meiteng Technology  vs.  Snap On

 Performance 
       Timeline  
Tianjin Meiteng Tech 

Risk-Adjusted Performance

Weakest

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

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Snap On are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Snap On may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Tianjin Meiteng and Snap On Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Tianjin Meiteng and Snap On

The main advantage of trading using opposite Tianjin Meiteng and Snap On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Meiteng 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 Tianjin Meiteng Technology 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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