Correlation Between Palantir Technologies and Splunk
Can any of the company-specific risk be diversified away by investing in both Palantir Technologies 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 Palantir Technologies and Splunk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palantir Technologies Class and Splunk Inc, you can compare the effects of market volatilities on Palantir Technologies 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 Palantir Technologies with a short position of Splunk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Splunk.
Diversification Opportunities for Palantir Technologies and Splunk
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Palantir and Splunk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and Splunk Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Splunk Inc and Palantir Technologies 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 Palantir Technologies Class 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 Palantir Technologies i.e., Palantir Technologies and Splunk go up and down completely randomly.
Pair Corralation between Palantir Technologies and Splunk
If you would invest 7,177 in Palantir Technologies Class on November 18, 2024 and sell it today you would earn a total of 4,739 from holding Palantir Technologies Class or generate 66.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Palantir Technologies Class vs. Splunk Inc
Performance |
| Timeline |
| Palantir Technologies |
| Splunk Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Palantir Technologies and Splunk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and Splunk
The main advantage of trading using opposite Palantir Technologies and Splunk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies 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.| Palantir Technologies vs. Alarum Technologies | Palantir Technologies vs. Arqit Quantum | Palantir Technologies vs. Nutanix | Palantir Technologies vs. Palo Alto Networks |
| Splunk vs. Crowdstrike Holdings | Splunk vs. Adobe Systems Incorporated | Splunk vs. Palantir Technologies Class | 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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