Correlation Between Exela Technologies and Snowflake
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Snowflake 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 Exela Technologies and Snowflake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies Preferred and Snowflake, you can compare the effects of market volatilities on Exela Technologies and Snowflake 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 Exela Technologies with a short position of Snowflake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Snowflake.
Diversification Opportunities for Exela Technologies and Snowflake
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exela and Snowflake is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and Snowflake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowflake and Exela Technologies 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 Exela Technologies Preferred are associated (or correlated) with Snowflake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snowflake has no effect on the direction of Exela Technologies i.e., Exela Technologies and Snowflake go up and down completely randomly.
Pair Corralation between Exela Technologies and Snowflake
Assuming the 90 days horizon Exela Technologies Preferred is expected to under-perform the Snowflake. In addition to that, Exela Technologies is 1.63 times more volatile than Snowflake. It trades about -0.05 of its total potential returns per unit of risk. Snowflake is currently generating about 0.0 per unit of volatility. If you would invest 18,768 in Snowflake on August 26, 2024 and sell it today you would lose (2,024) from holding Snowflake or give up 10.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.79% |
| Values | Daily Returns |
Exela Technologies Preferred vs. Snowflake
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Snowflake |
Exela Technologies and Snowflake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Snowflake
The main advantage of trading using opposite Exela Technologies and Snowflake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Snowflake 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 Snowflake will offset losses from the drop in Snowflake's long position.| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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