Correlation Between Crowdstrike Holdings and Kraken Energy
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Kraken Energy 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 Kraken Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Kraken Energy Corp, you can compare the effects of market volatilities on Crowdstrike Holdings and Kraken Energy 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 Kraken Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Kraken Energy.
Diversification Opportunities for Crowdstrike Holdings and Kraken Energy
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crowdstrike and Kraken is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Kraken Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Energy Corp 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 Kraken Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Energy Corp has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Kraken Energy go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Kraken Energy
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.37 times more return on investment than Kraken Energy. However, Crowdstrike Holdings is 2.73 times less risky than Kraken Energy. It trades about 0.39 of its potential returns per unit of risk. Kraken Energy Corp is currently generating about -0.2 per unit of risk. If you would invest 30,132 in Crowdstrike Holdings on August 29, 2024 and sell it today you would earn a total of 6,298 from holding Crowdstrike Holdings or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Kraken Energy Corp
Performance |
| Timeline |
| Crowdstrike Holdings |
| Kraken Energy Corp |
Crowdstrike Holdings and Kraken Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Kraken Energy
The main advantage of trading using opposite Crowdstrike Holdings and Kraken Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Kraken Energy 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 Kraken Energy will offset losses from the drop in Kraken Energy's long position.| Crowdstrike Holdings vs. GigaCloud Technology Class | Crowdstrike Holdings vs. Telos Corp | Crowdstrike Holdings vs. Cemtrex | Crowdstrike Holdings vs. authID Inc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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