Correlation Between Crowdstrike Holdings and Samsara

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

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

Diversification Opportunities for Crowdstrike Holdings and Samsara

0.9

Correlation Coefficient

Crowdstrike Holdings  Samsara

Almost no diversification

The 3 months correlation between Crowdstrike and Samsara is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Samsara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsara 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 Samsara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsara has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Samsara go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Samsara

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.94 times more return on investment than Samsara. However, Crowdstrike Holdings is 1.06 times less risky than Samsara. It trades about 0.03 of its potential returns per unit of risk. Samsara is currently generating about -0.04 per unit of risk. If you would invest  34,931  in Crowdstrike Holdings on December 30, 2024 and sell it today you would earn a total of  780.00  from holding Crowdstrike Holdings or generate 2.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Crowdstrike Holdings  vs.  Samsara

Crowdstrike Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 2 (%) 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.

Samsara

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samsara has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Crowdstrike Holdings and Samsara

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

The idea behind Crowdstrike Holdings and Samsara 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.