Correlation Between Bank of Zhengzhou and CrowdStrike Holdings
Can any of the company-specific risk be diversified away by investing in both Bank of Zhengzhou and CrowdStrike Holdings 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 Bank of Zhengzhou and CrowdStrike Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Zhengzhou and CrowdStrike Holdings, you can compare the effects of market volatilities on Bank of Zhengzhou and CrowdStrike Holdings 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 Bank of Zhengzhou with a short position of CrowdStrike Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Zhengzhou and CrowdStrike Holdings.
Diversification Opportunities for Bank of Zhengzhou and CrowdStrike Holdings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and CrowdStrike is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Zhengzhou and CrowdStrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrowdStrike Holdings and Bank of Zhengzhou 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 Bank of Zhengzhou are associated (or correlated) with CrowdStrike Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CrowdStrike Holdings has no effect on the direction of Bank of Zhengzhou i.e., Bank of Zhengzhou and CrowdStrike Holdings go up and down completely randomly.
Pair Corralation between Bank of Zhengzhou and CrowdStrike Holdings
Assuming the 90 days horizon Bank of Zhengzhou is expected to generate 1.61 times more return on investment than CrowdStrike Holdings. However, Bank of Zhengzhou is 1.61 times more volatile than CrowdStrike Holdings. It trades about 0.06 of its potential returns per unit of risk. CrowdStrike Holdings is currently generating about 0.05 per unit of risk. If you would invest 7.35 in Bank of Zhengzhou on October 20, 2024 and sell it today you would earn a total of 3.65 from holding Bank of Zhengzhou or generate 49.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Zhengzhou vs. CrowdStrike Holdings
Performance |
| Timeline |
| Bank of Zhengzhou |
| CrowdStrike Holdings |
Bank of Zhengzhou and CrowdStrike Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Zhengzhou and CrowdStrike Holdings
The main advantage of trading using opposite Bank of Zhengzhou and CrowdStrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Zhengzhou position performs unexpectedly, CrowdStrike Holdings 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 CrowdStrike Holdings will offset losses from the drop in CrowdStrike Holdings' long position.| Bank of Zhengzhou vs. China Merchants Bank | Bank of Zhengzhou vs. HDFC Bank Limited | Bank of Zhengzhou vs. ICICI Bank Limited | Bank of Zhengzhou vs. PT Bank Central |
| CrowdStrike Holdings vs. BII Railway Transportation | CrowdStrike Holdings vs. Stag Industrial | CrowdStrike Holdings vs. TRAINLINE PLC LS | CrowdStrike Holdings vs. Perseus Mining Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |