Correlation Between Crowdstrike Holdings and Golden Lake
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Golden Lake 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 Golden Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Golden Lake Exploration, you can compare the effects of market volatilities on Crowdstrike Holdings and Golden Lake 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 Golden Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Golden Lake.
Diversification Opportunities for Crowdstrike Holdings and Golden Lake
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crowdstrike and Golden is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Golden Lake Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Lake Exploration 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 Golden Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Lake Exploration has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Golden Lake go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Golden Lake
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.49 times less return on investment than Golden Lake. But when comparing it to its historical volatility, Crowdstrike Holdings is 3.62 times less risky than Golden Lake. It trades about 0.07 of its potential returns per unit of risk. Golden Lake Exploration is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Golden Lake Exploration on August 29, 2024 and sell it today you would lose (1.91) from holding Golden Lake Exploration or give up 34.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Golden Lake Exploration
Performance |
| Timeline |
| Crowdstrike Holdings |
| Golden Lake Exploration |
Crowdstrike Holdings and Golden Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Golden Lake
The main advantage of trading using opposite Crowdstrike Holdings and Golden Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Golden Lake 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 Golden Lake will offset losses from the drop in Golden Lake's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex | Crowdstrike Holdings vs. authID Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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