Correlation Between Crowdstrike Holdings and Unilever PLC
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Unilever PLC 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 Unilever PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Unilever PLC, you can compare the effects of market volatilities on Crowdstrike Holdings and Unilever PLC 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 Unilever PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Unilever PLC.
Diversification Opportunities for Crowdstrike Holdings and Unilever PLC
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crowdstrike and Unilever is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Unilever PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever PLC 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 Unilever PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever PLC has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Unilever PLC go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Unilever PLC
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.71 times more return on investment than Unilever PLC. However, Crowdstrike Holdings is 1.4 times less risky than Unilever PLC. It trades about 0.4 of its potential returns per unit of risk. Unilever PLC is currently generating about -0.08 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 | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Unilever PLC
Performance |
| Timeline |
| Crowdstrike Holdings |
| Unilever PLC |
Crowdstrike Holdings and Unilever PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Unilever PLC
The main advantage of trading using opposite Crowdstrike Holdings and Unilever PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Unilever PLC 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 Unilever PLC will offset losses from the drop in Unilever PLC'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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