Correlation Between Crowdstrike Holdings and Cannabix Technologies
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Cannabix Technologies 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 Cannabix Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Cannabix Technologies, you can compare the effects of market volatilities on Crowdstrike Holdings and Cannabix Technologies 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 Cannabix Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Cannabix Technologies.
Diversification Opportunities for Crowdstrike Holdings and Cannabix Technologies
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crowdstrike and Cannabix is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Cannabix Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabix Technologies 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 Cannabix Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabix Technologies has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Cannabix Technologies go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Cannabix Technologies
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate about the same return on investment as Cannabix Technologies. But, Crowdstrike Holdings is 2.46 times less risky than Cannabix Technologies. It trades about 0.11 of its potential returns per unit of risk. Cannabix Technologies is currently generating about 0.04 per unit of risk. If you would invest 21.00 in Cannabix Technologies on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Cannabix Technologies or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Cannabix Technologies
Performance |
| Timeline |
| Crowdstrike Holdings |
| Cannabix Technologies |
Crowdstrike Holdings and Cannabix Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Cannabix Technologies
The main advantage of trading using opposite Crowdstrike Holdings and Cannabix Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Cannabix Technologies 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 Cannabix Technologies will offset losses from the drop in Cannabix Technologies' long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex | Crowdstrike Holdings vs. authID Inc |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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