Correlation Between Crowdstrike Holdings and IGO
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and IGO 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 IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and IGO Limited, you can compare the effects of market volatilities on Crowdstrike Holdings and IGO 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 IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and IGO.
Diversification Opportunities for Crowdstrike Holdings and IGO
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crowdstrike and IGO is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited 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 IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and IGO go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and IGO
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.48 times more return on investment than IGO. However, Crowdstrike Holdings is 1.48 times more volatile than IGO Limited. It trades about 0.38 of its potential returns per unit of risk. IGO Limited is currently generating about 0.0 per unit of risk. If you would invest 30,132 in Crowdstrike Holdings on August 29, 2024 and sell it today you would earn a total of 6,298 from holding Crowdstrike Holdings or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Crowdstrike Holdings vs. IGO Limited
Performance |
| Timeline |
| Crowdstrike Holdings |
| IGO Limited |
Crowdstrike Holdings and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and IGO
The main advantage of trading using opposite Crowdstrike Holdings and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, IGO 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 IGO will offset losses from the drop in IGO's long position.| Crowdstrike Holdings vs. Adobe Systems Incorporated | Crowdstrike Holdings vs. Palantir Technologies Class | Crowdstrike Holdings vs. Zscaler | Crowdstrike Holdings vs. Okta 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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