Correlation Between CrowdStrike Holdings and KASPIKZ (SPGDR

Can any of the company-specific risk be diversified away by investing in both CrowdStrike Holdings and KASPIKZ (SPGDR 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 KASPIKZ (SPGDR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CrowdStrike Holdings and KASPIKZ 1, you can compare the effects of market volatilities on CrowdStrike Holdings and KASPIKZ (SPGDR 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 KASPIKZ (SPGDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrowdStrike Holdings and KASPIKZ (SPGDR.

Diversification Opportunities for CrowdStrike Holdings and KASPIKZ (SPGDR

0.73

Correlation Coefficient

CrowdStrike Holdings  KASPIKZ (SPGDR

Poor diversification

The 3 months correlation between CrowdStrike and KASPIKZ is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding CrowdStrike Holdings and KASPIKZ 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KASPIKZ (SPGDR 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 KASPIKZ (SPGDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KASPIKZ (SPGDR has no effect on the direction of CrowdStrike Holdings i.e., CrowdStrike Holdings and KASPIKZ (SPGDR go up and down completely randomly.

Pair Corralation between CrowdStrike Holdings and KASPIKZ (SPGDR

Assuming the 90 days horizon CrowdStrike Holdings is expected to generate 1.5 times more return on investment than KASPIKZ (SPGDR. However, CrowdStrike Holdings is 1.5 times more volatile than KASPIKZ 1. It trades about 0.01 of its potential returns per unit of risk. KASPIKZ 1 is currently generating about -0.06 per unit of risk. If you would invest  33,935  in CrowdStrike Holdings on December 29, 2024 and sell it today you would lose (175.00) from holding CrowdStrike Holdings or give up 0.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

CrowdStrike Holdings  vs.  KASPIKZ 1

CrowdStrike Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CrowdStrike Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, CrowdStrike Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

KASPIKZ (SPGDR

Risk-Adjusted Performance

Very Weak

Over the last 90 days KASPIKZ 1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with CrowdStrike Holdings and KASPIKZ (SPGDR

The main advantage of trading using opposite CrowdStrike Holdings and KASPIKZ (SPGDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrowdStrike Holdings position performs unexpectedly, KASPIKZ (SPGDR 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 KASPIKZ (SPGDR will offset losses from the drop in KASPIKZ (SPGDR's long position.

The idea behind CrowdStrike Holdings and KASPIKZ 1 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.