Correlation Between Snowflake and EAGLE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Snowflake and EAGLE MATERIALS INC, you can compare the effects of market volatilities on Snowflake and EAGLE 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 EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snowflake and EAGLE.
Diversification Opportunities for Snowflake and EAGLE
Excellent diversification
The 3 months correlation between Snowflake and EAGLE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Snowflake and EAGLE MATERIALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS INC 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 EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS INC has no effect on the direction of Snowflake i.e., Snowflake and EAGLE go up and down completely randomly.
Pair Corralation between Snowflake and EAGLE
Given the investment horizon of 90 days Snowflake is expected to generate 31.16 times less return on investment than EAGLE. But when comparing it to its historical volatility, Snowflake is 14.44 times less risky than EAGLE. It trades about 0.02 of its potential returns per unit of risk. EAGLE MATERIALS INC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,108 in EAGLE MATERIALS INC on August 27, 2024 and sell it today you would earn a total of 436.00 from holding EAGLE MATERIALS INC or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.87% |
| Values | Daily Returns |
Snowflake vs. EAGLE MATERIALS INC
Performance |
| Timeline |
| Snowflake |
| EAGLE MATERIALS INC |
Snowflake and EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snowflake and EAGLE
The main advantage of trading using opposite Snowflake and EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowflake position performs unexpectedly, EAGLE 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 EAGLE will offset losses from the drop in EAGLE's long position.The idea behind Snowflake and EAGLE MATERIALS INC 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |