Correlation Between Crowdstrike Holdings and OMV AG
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and OMV AG 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 OMV AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and OMV AG PK, you can compare the effects of market volatilities on Crowdstrike Holdings and OMV AG 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 OMV AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and OMV AG.
Diversification Opportunities for Crowdstrike Holdings and OMV AG
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crowdstrike and OMV is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and OMV AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMV AG PK 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 OMV AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMV AG PK has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and OMV AG go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and OMV AG
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 2.2 times more return on investment than OMV AG. However, Crowdstrike Holdings is 2.2 times more volatile than OMV AG PK. It trades about 0.4 of its potential returns per unit of risk. OMV AG PK is currently generating about -0.05 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. OMV AG PK
Performance |
| Timeline |
| Crowdstrike Holdings |
| OMV AG PK |
Crowdstrike Holdings and OMV AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and OMV AG
The main advantage of trading using opposite Crowdstrike Holdings and OMV AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, OMV AG 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 OMV AG will offset losses from the drop in OMV AG's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Arqit Quantum | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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