Correlation Between Crowdstrike Holdings and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Nordea Bank 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 Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Nordea Bank Abp, you can compare the effects of market volatilities on Crowdstrike Holdings and Nordea Bank 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 Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Nordea Bank.
Diversification Opportunities for Crowdstrike Holdings and Nordea Bank
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crowdstrike and Nordea is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp 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 Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Nordea Bank go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Nordea Bank
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.88 times more return on investment than Nordea Bank. However, Crowdstrike Holdings is 1.88 times more volatile than Nordea Bank Abp. It trades about 0.1 of its potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.03 per unit of risk. If you would invest 11,833 in Crowdstrike Holdings on August 26, 2024 and sell it today you would earn a total of 25,393 from holding Crowdstrike Holdings or generate 214.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Nordea Bank Abp
Performance |
| Timeline |
| Crowdstrike Holdings |
| Nordea Bank Abp |
Crowdstrike Holdings and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Nordea Bank
The main advantage of trading using opposite Crowdstrike Holdings and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Nordea Bank 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 Nordea Bank will offset losses from the drop in Nordea Bank's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Arqit Quantum | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex |
| Nordea Bank vs. United Overseas Bank | Nordea Bank vs. KBC Groep NV | Nordea Bank vs. Bank Mandiri Persero | Nordea Bank vs. Overseas Chinese Banking |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |