Correlation Between Crowdstrike Holdings and ZeroFox Holdings
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and ZeroFox Holdings 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 ZeroFox Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and ZeroFox Holdings, you can compare the effects of market volatilities on Crowdstrike Holdings and ZeroFox Holdings 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 ZeroFox Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and ZeroFox Holdings.
Diversification Opportunities for Crowdstrike Holdings and ZeroFox Holdings
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Crowdstrike and ZeroFox is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and ZeroFox Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZeroFox Holdings 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 ZeroFox Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZeroFox Holdings has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and ZeroFox Holdings go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and ZeroFox Holdings
If you would invest 30,447 in Crowdstrike Holdings on August 25, 2024 and sell it today you would earn a total of 6,779 from holding Crowdstrike Holdings or generate 22.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Crowdstrike Holdings vs. ZeroFox Holdings
Performance |
| Timeline |
| Crowdstrike Holdings |
| ZeroFox Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Crowdstrike Holdings and ZeroFox Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and ZeroFox Holdings
The main advantage of trading using opposite Crowdstrike Holdings and ZeroFox Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, ZeroFox Holdings 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 ZeroFox Holdings will offset losses from the drop in ZeroFox Holdings' long position.| Crowdstrike Holdings vs. Adobe Systems Incorporated | Crowdstrike Holdings vs. Palantir Technologies | Crowdstrike Holdings vs. Zscaler | Crowdstrike Holdings vs. Okta Inc |
| ZeroFox Holdings vs. Hub Cyber Security | ZeroFox Holdings vs. authID Inc | ZeroFox Holdings vs. VirnetX Holding Corp | ZeroFox Holdings vs. Aurora Mobile |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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