Correlation Between F5 Networks and CrowdStrike Holdings,

Can any of the company-specific risk be diversified away by investing in both F5 Networks and CrowdStrike Holdings, 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 F5 Networks and CrowdStrike Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between F5 Networks and CrowdStrike Holdings,, you can compare the effects of market volatilities on F5 Networks and CrowdStrike Holdings, 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 F5 Networks with a short position of CrowdStrike Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of F5 Networks and CrowdStrike Holdings,.

Diversification Opportunities for F5 Networks and CrowdStrike Holdings,

-0.18

Correlation Coefficient

F5 Networks  CrowdStrike Holdings,

Good diversification

The 3 months correlation between FFIV and CrowdStrike is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding F5 Networks and CrowdStrike Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrowdStrike Holdings, and F5 Networks 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 F5 Networks are associated (or correlated) with CrowdStrike Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CrowdStrike Holdings, has no effect on the direction of F5 Networks i.e., F5 Networks and CrowdStrike Holdings, go up and down completely randomly.

Pair Corralation between F5 Networks and CrowdStrike Holdings,

Assuming the 90 days trading horizon F5 Networks is expected to generate 1.32 times more return on investment than CrowdStrike Holdings,. However, F5 Networks is 1.32 times more volatile than CrowdStrike Holdings,. It trades about 0.11 of its potential returns per unit of risk. CrowdStrike Holdings, is currently generating about 0.02 per unit of risk. If you would invest  464,253  in F5 Networks on December 30, 2024 and sell it today you would earn a total of  131,747  from holding F5 Networks or generate 28.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

F5 Networks  vs.  CrowdStrike Holdings,

F5 Networks

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in F5 Networks are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, F5 Networks showed solid returns over the last few months and may actually be approaching a breakup point.

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 fairly strong basic indicators, CrowdStrike Holdings, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with F5 Networks and CrowdStrike Holdings,

The main advantage of trading using opposite F5 Networks and CrowdStrike Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F5 Networks position performs unexpectedly, CrowdStrike Holdings, 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 CrowdStrike Holdings, will offset losses from the drop in CrowdStrike Holdings,'s long position.

The idea behind F5 Networks and CrowdStrike Holdings, 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.