Correlation Between Crowdstrike Holdings and Bankinter
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Bankinter 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 Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Bankinter SA ADR, you can compare the effects of market volatilities on Crowdstrike Holdings and Bankinter 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 Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Bankinter.
Diversification Opportunities for Crowdstrike Holdings and Bankinter
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crowdstrike and Bankinter is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Bankinter SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA ADR 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 Bankinter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinter SA ADR has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Bankinter go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Bankinter
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.74 times more return on investment than Bankinter. However, Crowdstrike Holdings is 1.36 times less risky than Bankinter. It trades about 0.46 of its potential returns per unit of risk. Bankinter SA ADR is currently generating about -0.05 per unit of risk. If you would invest 30,062 in Crowdstrike Holdings on August 26, 2024 and sell it today you would earn a total of 7,164 from holding Crowdstrike Holdings or generate 23.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Bankinter SA ADR
Performance |
| Timeline |
| Crowdstrike Holdings |
| Bankinter SA ADR |
Crowdstrike Holdings and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Bankinter
The main advantage of trading using opposite Crowdstrike Holdings and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Bankinter 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 Bankinter will offset losses from the drop in Bankinter's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Arqit Quantum | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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