Correlation Between Crowdstrike Holdings and Nordex SE
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Nordex SE 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 Nordex SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Nordex SE, you can compare the effects of market volatilities on Crowdstrike Holdings and Nordex SE 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 Nordex SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Nordex SE.
Diversification Opportunities for Crowdstrike Holdings and Nordex SE
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crowdstrike and Nordex is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Nordex SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordex SE 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 Nordex SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordex SE has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Nordex SE go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Nordex SE
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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Nordex SE
Performance |
| Timeline |
| Crowdstrike Holdings |
| Nordex SE |
Crowdstrike Holdings and Nordex SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Nordex SE
The main advantage of trading using opposite Crowdstrike Holdings and Nordex SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Nordex SE 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 Nordex SE will offset losses from the drop in Nordex SE's long position.| Crowdstrike Holdings vs. Adobe Systems Incorporated | Crowdstrike Holdings vs. Palantir Technologies Class | Crowdstrike Holdings vs. Zscaler | Crowdstrike Holdings vs. Okta Inc |
| Nordex SE vs. Shanghai Electric Group | Nordex SE vs. Schneider Electric SA | Nordex SE vs. Xinjiang Goldwind Science | Nordex SE vs. Nordex SE |
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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