Correlation Between Crowdstrike Holdings and Intrusion

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

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

Diversification Opportunities for Crowdstrike Holdings and Intrusion

-0.07

Correlation Coefficient

Crowdstrike Holdings  Intrusion

Good diversification

The 3 months correlation between Crowdstrike and Intrusion is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion 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 Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Intrusion go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Intrusion

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 140.61 times less return on investment than Intrusion. But when comparing it to its historical volatility, Crowdstrike Holdings is 16.83 times less risky than Intrusion. It trades about 0.02 of its potential returns per unit of risk. Intrusion is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  36.00  in Intrusion on December 23, 2024 and sell it today you would earn a total of  83.00  from holding Intrusion or generate 230.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Crowdstrike Holdings  vs.  Intrusion

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. In spite of rather sound basic indicators, Crowdstrike Holdings is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Intrusion

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intrusion showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Crowdstrike Holdings and Intrusion

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

The idea behind Crowdstrike Holdings and Intrusion 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.