Correlation Between Crowdstrike Holdings and CIB Marine
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and CIB Marine 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 CIB Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and CIB Marine Bancshares, you can compare the effects of market volatilities on Crowdstrike Holdings and CIB Marine 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 CIB Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and CIB Marine.
Diversification Opportunities for Crowdstrike Holdings and CIB Marine
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crowdstrike and CIB is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and CIB Marine Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIB Marine Bancshares 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 CIB Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIB Marine Bancshares has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and CIB Marine go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and CIB Marine
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.17 times more return on investment than CIB Marine. However, Crowdstrike Holdings is 1.17 times more volatile than CIB Marine Bancshares. It trades about 0.4 of its potential returns per unit of risk. CIB Marine Bancshares is currently generating about -0.05 per unit of risk. If you would invest 30,132 in Crowdstrike Holdings on August 28, 2024 and sell it today you would earn a total of 6,236 from holding Crowdstrike Holdings or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. CIB Marine Bancshares
Performance |
| Timeline |
| Crowdstrike Holdings |
| CIB Marine Bancshares |
Crowdstrike Holdings and CIB Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and CIB Marine
The main advantage of trading using opposite Crowdstrike Holdings and CIB Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, CIB Marine 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 CIB Marine will offset losses from the drop in CIB Marine's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Arqit Quantum | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex |
| CIB Marine vs. U I Financial | CIB Marine vs. Heartland Banccorp | CIB Marine vs. United Bancorporation of | CIB Marine vs. Harbor Bankshares |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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