Correlation Between PagSeguro Digital and Crowdstrike Holdings
Can any of the company-specific risk be diversified away by investing in both PagSeguro Digital and Crowdstrike 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 PagSeguro Digital and Crowdstrike Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PagSeguro Digital and Crowdstrike Holdings, you can compare the effects of market volatilities on PagSeguro Digital and Crowdstrike 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 PagSeguro Digital with a short position of Crowdstrike Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PagSeguro Digital and Crowdstrike Holdings.
Diversification Opportunities for PagSeguro Digital and Crowdstrike Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PagSeguro and Crowdstrike is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding PagSeguro Digital and Crowdstrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crowdstrike Holdings and PagSeguro Digital 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 PagSeguro Digital are associated (or correlated) with Crowdstrike Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crowdstrike Holdings has no effect on the direction of PagSeguro Digital i.e., PagSeguro Digital and Crowdstrike Holdings go up and down completely randomly.
Pair Corralation between PagSeguro Digital and Crowdstrike Holdings
Given the investment horizon of 90 days PagSeguro Digital is expected to under-perform the Crowdstrike Holdings. But the stock apears to be less risky and, when comparing its historical volatility, PagSeguro Digital is 1.15 times less risky than Crowdstrike Holdings. The stock trades about -0.14 of its potential returns per unit of risk. The Crowdstrike Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 30,869 in Crowdstrike Holdings on September 1, 2024 and sell it today you would earn a total of 3,728 from holding Crowdstrike Holdings or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PagSeguro Digital vs. Crowdstrike Holdings
Performance |
| Timeline |
| PagSeguro Digital |
| Crowdstrike Holdings |
PagSeguro Digital and Crowdstrike Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PagSeguro Digital and Crowdstrike Holdings
The main advantage of trading using opposite PagSeguro Digital and Crowdstrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PagSeguro Digital position performs unexpectedly, Crowdstrike 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 Crowdstrike Holdings will offset losses from the drop in Crowdstrike Holdings' long position.| PagSeguro Digital vs. Marqeta | PagSeguro Digital vs. StoneCo | PagSeguro Digital vs. Confluent | PagSeguro Digital vs. Dlocal |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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