Correlation Between Crowdstrike Holdings and Nutanix
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Nutanix 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 Nutanix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Nutanix, you can compare the effects of market volatilities on Crowdstrike Holdings and Nutanix 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 Nutanix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Nutanix.
Diversification Opportunities for Crowdstrike Holdings and Nutanix
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Crowdstrike and Nutanix is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Nutanix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutanix 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 Nutanix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutanix has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Nutanix go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Nutanix
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.08 times more return on investment than Nutanix. However, Crowdstrike Holdings is 1.08 times more volatile than Nutanix. It trades about 0.47 of its potential returns per unit of risk. Nutanix is currently generating about 0.17 per unit of risk. If you would invest 35,700 in Crowdstrike Holdings on November 18, 2024 and sell it today you would earn a total of 9,474 from holding Crowdstrike Holdings or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Nutanix
Performance |
| Timeline |
| Crowdstrike Holdings |
| Nutanix |
Crowdstrike Holdings and Nutanix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Nutanix
The main advantage of trading using opposite Crowdstrike Holdings and Nutanix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Nutanix 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 Nutanix will offset losses from the drop in Nutanix's long position.| Crowdstrike Holdings vs. Adobe Systems Incorporated | Crowdstrike Holdings vs. Palantir Technologies Class | Crowdstrike Holdings vs. Zscaler | Crowdstrike Holdings vs. Okta Inc |
| Nutanix vs. Palo Alto Networks | Nutanix vs. Uipath Inc | Nutanix vs. Zscaler | Nutanix vs. Crowdstrike Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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