Correlation Between Crowdstrike Holdings and Fluence Energy
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Fluence Energy 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 Fluence Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Fluence Energy, you can compare the effects of market volatilities on Crowdstrike Holdings and Fluence Energy 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 Fluence Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Fluence Energy.
Diversification Opportunities for Crowdstrike Holdings and Fluence Energy
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crowdstrike and Fluence is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Fluence Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluence Energy 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 Fluence Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluence Energy has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Fluence Energy go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Fluence Energy
Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.5 times more return on investment than Fluence Energy. However, Crowdstrike Holdings is 2.0 times less risky than Fluence Energy. It trades about 0.02 of its potential returns per unit of risk. Fluence Energy is currently generating about -0.27 per unit of risk. If you would invest 36,368 in Crowdstrike Holdings on September 26, 2024 and sell it today you would earn a total of 211.00 from holding Crowdstrike Holdings or generate 0.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Crowdstrike Holdings vs. Fluence Energy
Performance |
Timeline |
Crowdstrike Holdings |
Fluence Energy |
Crowdstrike Holdings and Fluence Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Crowdstrike Holdings and Fluence Energy
The main advantage of trading using opposite Crowdstrike Holdings and Fluence Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Fluence Energy 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 Fluence Energy will offset losses from the drop in Fluence Energy's long position.Crowdstrike Holdings vs. Adobe Systems Incorporated | Crowdstrike Holdings vs. Palantir Technologies Class | Crowdstrike Holdings vs. Zscaler | Crowdstrike Holdings vs. Okta Inc |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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