Correlation Between Crowdstrike Holdings and Man Wah
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Man Wah 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 Man Wah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Man Wah Holdings, you can compare the effects of market volatilities on Crowdstrike Holdings and Man Wah 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 Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Man Wah.
Diversification Opportunities for Crowdstrike Holdings and Man Wah
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crowdstrike and Man is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Man Wah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Wah Holdings 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 Man Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Wah Holdings has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Man Wah go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Man Wah
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.52 times more return on investment than Man Wah. However, Crowdstrike Holdings is 1.92 times less risky than Man Wah. It trades about 0.1 of its potential returns per unit of risk. Man Wah Holdings is currently generating about 0.0 per unit of risk. If you would invest 15,408 in Crowdstrike Holdings on August 27, 2024 and sell it today you would earn a total of 21,818 from holding Crowdstrike Holdings or generate 141.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.75% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Man Wah Holdings
Performance |
| Timeline |
| Crowdstrike Holdings |
| Man Wah Holdings |
Crowdstrike Holdings and Man Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Man Wah
The main advantage of trading using opposite Crowdstrike Holdings and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Arqit Quantum | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex |
| Man Wah vs. La Z Boy Incorporated | Man Wah vs. MasterBrand | Man Wah vs. MillerKnoll | Man Wah vs. Flexsteel Industries |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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