Correlation Between Crowdstrike Holdings and ImagineAR
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and ImagineAR 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 ImagineAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and ImagineAR, you can compare the effects of market volatilities on Crowdstrike Holdings and ImagineAR 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 ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and ImagineAR.
Diversification Opportunities for Crowdstrike Holdings and ImagineAR
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Crowdstrike and ImagineAR is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR 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 ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and ImagineAR go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and ImagineAR
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.22 times more return on investment than ImagineAR. However, Crowdstrike Holdings is 4.6 times less risky than ImagineAR. It trades about 0.39 of its potential returns per unit of risk. ImagineAR is currently generating about 0.02 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. ImagineAR
Performance |
| Timeline |
| Crowdstrike Holdings |
| ImagineAR |
Crowdstrike Holdings and ImagineAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and ImagineAR
The main advantage of trading using opposite Crowdstrike Holdings and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex | Crowdstrike Holdings vs. authID Inc |
| ImagineAR vs. Argentum 47 | ImagineAR vs. Arax Holdings Corp | ImagineAR vs. Fobi AI | ImagineAR vs. AppTech Payments Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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