Correlation Between CrowdStrike Holdings and Altair Engineering
Can any of the company-specific risk be diversified away by investing in both CrowdStrike Holdings and Altair Engineering 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 Altair Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CrowdStrike Holdings and Altair Engineering, you can compare the effects of market volatilities on CrowdStrike Holdings and Altair Engineering 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 Altair Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrowdStrike Holdings and Altair Engineering.
Diversification Opportunities for CrowdStrike Holdings and Altair Engineering
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CrowdStrike and Altair is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CrowdStrike Holdings and Altair Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering 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 Altair Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Engineering has no effect on the direction of CrowdStrike Holdings i.e., CrowdStrike Holdings and Altair Engineering go up and down completely randomly.
Pair Corralation between CrowdStrike Holdings and Altair Engineering
Assuming the 90 days horizon CrowdStrike Holdings is expected to generate 5.07 times more return on investment than Altair Engineering. However, CrowdStrike Holdings is 5.07 times more volatile than Altair Engineering. It trades about 0.0 of its potential returns per unit of risk. Altair Engineering is currently generating about -0.02 per unit of risk. If you would invest 33,935 in CrowdStrike Holdings on December 30, 2024 and sell it today you would lose (1,225) from holding CrowdStrike Holdings or give up 3.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.88% |
Values | Daily Returns |
CrowdStrike Holdings vs. Altair Engineering
Performance |
Timeline |
CrowdStrike Holdings |
Altair Engineering |
CrowdStrike Holdings and Altair Engineering Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CrowdStrike Holdings and Altair Engineering
The main advantage of trading using opposite CrowdStrike Holdings and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrowdStrike Holdings position performs unexpectedly, Altair Engineering 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 Altair Engineering will offset losses from the drop in Altair Engineering's long position.CrowdStrike Holdings vs. DAIRY FARM INTL | CrowdStrike Holdings vs. Australian Agricultural | CrowdStrike Holdings vs. PARKEN Sport Entertainment | CrowdStrike Holdings vs. Yuexiu Transport Infrastructure |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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