Correlation Between Crowdstrike Holdings and Sandvik AB
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Sandvik AB 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 Sandvik AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Sandvik AB ADR, you can compare the effects of market volatilities on Crowdstrike Holdings and Sandvik AB 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 Sandvik AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Sandvik AB.
Diversification Opportunities for Crowdstrike Holdings and Sandvik AB
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crowdstrike and Sandvik is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Sandvik AB ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandvik AB ADR 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 Sandvik AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandvik AB ADR has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Sandvik AB go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Sandvik AB
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.17 times more return on investment than Sandvik AB. However, Crowdstrike Holdings is 1.17 times more volatile than Sandvik AB ADR. It trades about 0.46 of its potential returns per unit of risk. Sandvik AB ADR is currently generating about -0.19 per unit of risk. If you would invest 30,062 in Crowdstrike Holdings on August 26, 2024 and sell it today you would earn a total of 7,164 from holding Crowdstrike Holdings or generate 23.83% 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. Sandvik AB ADR
Performance |
| Timeline |
| Crowdstrike Holdings |
| Sandvik AB ADR |
Crowdstrike Holdings and Sandvik AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Sandvik AB
The main advantage of trading using opposite Crowdstrike Holdings and Sandvik AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Sandvik AB 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 Sandvik AB will offset losses from the drop in Sandvik AB's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Arqit Quantum | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex |
| Sandvik AB vs. Rockwell Automation | Sandvik AB vs. Schneider Electric SA | Sandvik AB vs. Fanuc | Sandvik AB vs. Vestas Wind Systems |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |