Correlation Between Snowflake and AFLAC
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By analyzing existing cross correlation between Snowflake and AFLAC INC 4, you can compare the effects of market volatilities on Snowflake and AFLAC 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 AFLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snowflake and AFLAC.
Diversification Opportunities for Snowflake and AFLAC
Good diversification
The 3 months correlation between Snowflake and AFLAC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Snowflake and AFLAC INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFLAC INC 4 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 AFLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC INC 4 has no effect on the direction of Snowflake i.e., Snowflake and AFLAC go up and down completely randomly.
Pair Corralation between Snowflake and AFLAC
Given the investment horizon of 90 days Snowflake is expected to generate 4.29 times more return on investment than AFLAC. However, Snowflake is 4.29 times more volatile than AFLAC INC 4. It trades about 0.29 of its potential returns per unit of risk. AFLAC INC 4 is currently generating about 0.19 per unit of risk. If you would invest 11,361 in Snowflake on August 24, 2024 and sell it today you would earn a total of 5,774 from holding Snowflake or generate 50.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.22% |
| Values | Daily Returns |
Snowflake vs. AFLAC INC 4
Performance |
| Timeline |
| Snowflake |
| AFLAC INC 4 |
Snowflake and AFLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snowflake and AFLAC
The main advantage of trading using opposite Snowflake and AFLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowflake position performs unexpectedly, AFLAC 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 AFLAC will offset losses from the drop in AFLAC's long position.The idea behind Snowflake and AFLAC INC 4 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.| AFLAC vs. Fortress Transp Infra | AFLAC vs. FTAI Aviation Ltd | AFLAC vs. Vestis | AFLAC vs. Lendlease Global Commercial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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