Correlation Between Crowdstrike Holdings and Splunk
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Splunk 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 Splunk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Splunk Inc, you can compare the effects of market volatilities on Crowdstrike Holdings and Splunk 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 Splunk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Splunk.
Diversification Opportunities for Crowdstrike Holdings and Splunk
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Crowdstrike and Splunk is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Splunk Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Splunk Inc 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 Splunk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Splunk Inc has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Splunk go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Splunk
If you would invest 23,699 in Crowdstrike Holdings on August 26, 2024 and sell it today you would earn a total of 13,527 from holding Crowdstrike Holdings or generate 57.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.4% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Splunk Inc
Performance |
| Timeline |
| Crowdstrike Holdings |
| Splunk Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Crowdstrike Holdings and Splunk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Splunk
The main advantage of trading using opposite Crowdstrike Holdings and Splunk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Splunk 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 Splunk will offset losses from the drop in Splunk's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Arqit Quantum | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex |
| Splunk vs. Crowdstrike Holdings | Splunk vs. Adobe Systems Incorporated | Splunk vs. Palantir Technologies | Splunk vs. Zscaler |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |