Correlation Between CrowdStrike Holdings and Identiv
Can any of the company-specific risk be diversified away by investing in both CrowdStrike Holdings and Identiv 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 CrowdStrike Holdings and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CrowdStrike Holdings and Identiv, you can compare the effects of market volatilities on CrowdStrike Holdings and Identiv 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 CrowdStrike Holdings with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrowdStrike Holdings and Identiv.
Diversification Opportunities for CrowdStrike Holdings and Identiv
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CrowdStrike and Identiv is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CrowdStrike Holdings and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and CrowdStrike Holdings 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 CrowdStrike Holdings are associated (or correlated) with Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of CrowdStrike Holdings i.e., CrowdStrike Holdings and Identiv go up and down completely randomly.
Pair Corralation between CrowdStrike Holdings and Identiv
Assuming the 90 days horizon CrowdStrike Holdings is expected to generate 0.7 times more return on investment than Identiv. However, CrowdStrike Holdings is 1.44 times less risky than Identiv. It trades about 0.1 of its potential returns per unit of risk. Identiv is currently generating about -0.02 per unit of risk. If you would invest 9,701 in CrowdStrike Holdings on October 14, 2024 and sell it today you would earn a total of 25,034 from holding CrowdStrike Holdings or generate 258.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CrowdStrike Holdings vs. Identiv
Performance |
| Timeline |
| CrowdStrike Holdings |
| Identiv |
CrowdStrike Holdings and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CrowdStrike Holdings and Identiv
The main advantage of trading using opposite CrowdStrike Holdings and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrowdStrike Holdings position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| CrowdStrike Holdings vs. American Airlines Group | CrowdStrike Holdings vs. SINGAPORE AIRLINES | CrowdStrike Holdings vs. JAPAN AIRLINES | CrowdStrike Holdings vs. HK Electric Investments |
| Identiv vs. Algonquin Power Utilities | Identiv vs. COSMOSTEEL HLDGS | Identiv vs. PLAYTIKA HOLDING DL 01 | Identiv vs. PLAYTECH |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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