Correlation Between Snowflake and PTC
Can any of the company-specific risk be diversified away by investing in both Snowflake and PTC 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 PTC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snowflake and PTC Inc, you can compare the effects of market volatilities on Snowflake and PTC 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 PTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snowflake and PTC.
Diversification Opportunities for Snowflake and PTC
Excellent diversification
The 3 months correlation between Snowflake and PTC is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Snowflake and PTC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTC 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 PTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTC Inc has no effect on the direction of Snowflake i.e., Snowflake and PTC go up and down completely randomly.
Pair Corralation between Snowflake and PTC
Given the investment horizon of 90 days Snowflake is expected to generate 2.12 times more return on investment than PTC. However, Snowflake is 2.12 times more volatile than PTC Inc. It trades about 0.14 of its potential returns per unit of risk. PTC Inc is currently generating about -0.18 per unit of risk. If you would invest 19,480 in Snowflake on August 20, 2025 and sell it today you would earn a total of 5,799 from holding Snowflake or generate 29.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snowflake vs. PTC Inc
Performance |
| Timeline |
| Snowflake |
| PTC Inc |
Snowflake and PTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snowflake and PTC
The main advantage of trading using opposite Snowflake and PTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowflake position performs unexpectedly, PTC 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 PTC will offset losses from the drop in PTC's long position.| Snowflake vs. MicroStrategy Incorporated | Snowflake vs. CoreWeave, Class A | Snowflake vs. Cadence Design Systems | Snowflake vs. Synopsys |
| PTC vs. Trade Desk | PTC vs. Figma, Inc | PTC vs. SSC Technologies Holdings | PTC vs. Zoom Video Communications |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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