Correlation Between Crowdstrike Holdings and EBullion
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and EBullion 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 EBullion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and EBullion, you can compare the effects of market volatilities on Crowdstrike Holdings and EBullion 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 EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and EBullion.
Diversification Opportunities for Crowdstrike Holdings and EBullion
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crowdstrike and EBullion is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion 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 EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and EBullion go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and EBullion
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 2.26 times less return on investment than EBullion. But when comparing it to its historical volatility, Crowdstrike Holdings is 6.57 times less risky than EBullion. It trades about 0.1 of its potential returns per unit of risk. EBullion is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.50 in EBullion on August 29, 2024 and sell it today you would lose (0.38) from holding EBullion or give up 76.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.52% |
| Values | Daily Returns |
Crowdstrike Holdings vs. EBullion
Performance |
| Timeline |
| Crowdstrike Holdings |
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Crowdstrike Holdings and EBullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and EBullion
The main advantage of trading using opposite Crowdstrike Holdings and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex | Crowdstrike Holdings vs. authID Inc |
| EBullion vs. SPENN Technology AS | EBullion vs. Arcane Crypto AB | EBullion vs. OFX Group Ltd | EBullion vs. Blockmate Ventures |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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