Correlation Between Snowflake and SSC Technologies
Can any of the company-specific risk be diversified away by investing in both Snowflake and SSC Technologies 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 Snowflake and SSC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snowflake and SSC Technologies Holdings,, you can compare the effects of market volatilities on Snowflake and SSC Technologies 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 Snowflake with a short position of SSC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snowflake and SSC Technologies.
Diversification Opportunities for Snowflake and SSC Technologies
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Snowflake and SSC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Snowflake and SSC Technologies Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies Hol and Snowflake 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 Snowflake are associated (or correlated) with SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies Hol has no effect on the direction of Snowflake i.e., Snowflake and SSC Technologies go up and down completely randomly.
Pair Corralation between Snowflake and SSC Technologies
Assuming the 90 days trading horizon Snowflake is expected to generate 90.67 times more return on investment than SSC Technologies. However, Snowflake is 90.67 times more volatile than SSC Technologies Holdings,. It trades about 0.2 of its potential returns per unit of risk. SSC Technologies Holdings, is currently generating about 0.13 per unit of risk. If you would invest 2,236 in Snowflake on April 24, 2025 and sell it today you would earn a total of 698.00 from holding Snowflake or generate 31.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Snowflake vs. SSC Technologies Holdings,
Performance |
Timeline |
Snowflake |
SSC Technologies Hol |
Snowflake and SSC Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Snowflake and SSC Technologies
The main advantage of trading using opposite Snowflake and SSC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowflake position performs unexpectedly, SSC Technologies 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 SSC Technologies will offset losses from the drop in SSC Technologies' long position.Snowflake vs. Martin Marietta Materials, | Snowflake vs. Autohome | Snowflake vs. The Home Depot | Snowflake vs. Align Technology |
SSC Technologies vs. Vulcan Materials | SSC Technologies vs. Annaly Capital Management, | SSC Technologies vs. Patria Investments Limited | SSC Technologies vs. Alaska Air Group, |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |