Correlation Between Crowdstrike Holdings and PetroChina
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and PetroChina 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 PetroChina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and PetroChina Co Ltd, you can compare the effects of market volatilities on Crowdstrike Holdings and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and PetroChina.
Diversification Opportunities for Crowdstrike Holdings and PetroChina
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crowdstrike and PetroChina is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and PetroChina go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and PetroChina
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.97 times more return on investment than PetroChina. However, Crowdstrike Holdings is 1.03 times less risky than PetroChina. It trades about 0.33 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.12 per unit of risk. If you would invest 31,094 in Crowdstrike Holdings on August 30, 2024 and sell it today you would earn a total of 5,336 from holding Crowdstrike Holdings or generate 17.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Crowdstrike Holdings vs. PetroChina Co Ltd
Performance |
| Timeline |
| Crowdstrike Holdings |
| PetroChina |
Crowdstrike Holdings and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and PetroChina
The main advantage of trading using opposite Crowdstrike Holdings and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Crowdstrike Holdings vs. Adobe Systems Incorporated | Crowdstrike Holdings vs. Palantir Technologies Class | Crowdstrike Holdings vs. Zscaler | Crowdstrike Holdings vs. Okta Inc |
| PetroChina vs. Equinor ASA | PetroChina vs. Origin Energy Ltd | PetroChina vs. Shell PLC | PetroChina vs. Eni SpA ADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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