Correlation Between Citrix Systems and Snowflake

Can any of the company-specific risk be diversified away by investing in both Citrix Systems 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 Citrix Systems and Snowflake into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citrix Systems and Snowflake, you can compare the effects of market volatilities on Citrix Systems 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 Citrix Systems with a short position of Snowflake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrix Systems and Snowflake.

Diversification Opportunities for Citrix Systems and Snowflake

-0.54

Correlation Coefficient

Citrix Systems  Snowflake

Excellent diversification

The 3 months correlation between Citrix and Snowflake is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citrix Systems and Snowflake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowflake and Citrix Systems 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 Citrix Systems 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 Citrix Systems i.e., Citrix Systems and Snowflake go up and down completely randomly.

Pair Corralation between Citrix Systems and Snowflake

If you would invest  10,390  in Citrix Systems on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Citrix Systems or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Citrix Systems  vs.  Snowflake

Citrix Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Citrix Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Citrix Systems is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Snowflake

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Snowflake has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in May 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Citrix Systems and Snowflake

The main advantage of trading using opposite Citrix Systems and Snowflake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrix Systems 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.

The idea behind Citrix Systems and Snowflake 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.