Correlation Between BlueScope Steel and CrowdStrike Holdings
Can any of the company-specific risk be diversified away by investing in both BlueScope Steel 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 BlueScope Steel and CrowdStrike Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlueScope Steel Limited and CrowdStrike Holdings, you can compare the effects of market volatilities on BlueScope Steel 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 BlueScope Steel with a short position of CrowdStrike Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueScope Steel and CrowdStrike Holdings.
Diversification Opportunities for BlueScope Steel and CrowdStrike Holdings
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BlueScope and CrowdStrike is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding BlueScope Steel Limited and CrowdStrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrowdStrike Holdings and BlueScope Steel 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 BlueScope Steel Limited 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 BlueScope Steel i.e., BlueScope Steel and CrowdStrike Holdings go up and down completely randomly.
Pair Corralation between BlueScope Steel and CrowdStrike Holdings
Assuming the 90 days horizon BlueScope Steel is expected to generate 4.16 times less return on investment than CrowdStrike Holdings. But when comparing it to its historical volatility, BlueScope Steel Limited is 1.24 times less risky than CrowdStrike Holdings. It trades about 0.06 of its potential returns per unit of risk. CrowdStrike Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 24,900 in CrowdStrike Holdings on August 29, 2024 and sell it today you would earn a total of 10,130 from holding CrowdStrike Holdings or generate 40.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
BlueScope Steel Limited vs. CrowdStrike Holdings
Performance |
| Timeline |
| BlueScope Steel |
| CrowdStrike Holdings |
BlueScope Steel and CrowdStrike Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueScope Steel and CrowdStrike Holdings
The main advantage of trading using opposite BlueScope Steel and CrowdStrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueScope Steel 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.| BlueScope Steel vs. AM EAGLE OUTFITTERS | BlueScope Steel vs. International Game Technology | BlueScope Steel vs. Apollo Investment Corp | BlueScope Steel vs. Penn National Gaming |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |