Correlation Between Snowflake and ANTA SPORTS

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

Diversification Opportunities for Snowflake and ANTA SPORTS

SnowflakeANTADiversified AwaySnowflakeANTADiversified Away100%
-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Snowflake and ANTA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Snowflake and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Snowflake i.e., Snowflake and ANTA SPORTS go up and down completely randomly.

Pair Corralation between Snowflake and ANTA SPORTS

Assuming the 90 days horizon Snowflake is expected to generate 2.02 times more return on investment than ANTA SPORTS. However, Snowflake is 2.02 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.17 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.05 per unit of risk. If you would invest  10,882  in Snowflake on October 26, 2024 and sell it today you would earn a total of  5,938  from holding Snowflake or generate 54.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Snowflake  vs.  ANTA SPORTS PRODUCT

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -100102030405060
JavaScript chart by amCharts 3.21.155Q5 AS7
       Timeline  
Snowflake 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Snowflake are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Snowflake reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan110120130140150160170
ANTA SPORTS PRODUCT 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ANTA SPORTS PRODUCT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan9.29.49.69.81010.210.410.6

Snowflake and ANTA SPORTS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-14.43-10.81-7.19-3.560.03.797.7111.6415.5619.48 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.155Q5 AS7
       Returns  

Pair Trading with Snowflake and ANTA SPORTS

The main advantage of trading using opposite Snowflake and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowflake position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.
The idea behind Snowflake and ANTA SPORTS PRODUCT 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.
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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