Correlation Between KASPIKZ 1 and CrowdStrike Holdings

Can any of the company-specific risk be diversified away by investing in both KASPIKZ 1 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 KASPIKZ 1 and CrowdStrike Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for KASPIKZ 1 and CrowdStrike Holdings

0.64

Correlation Coefficient

KASPIKZ 1  CrowdStrike Holdings

Poor diversification

The 3 months correlation between KASPIKZ and CrowdStrike is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding KASPIKZ 1 and CrowdStrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrowdStrike Holdings and KASPIKZ 1 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 KASPIKZ 1 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 KASPIKZ 1 i.e., KASPIKZ 1 and CrowdStrike Holdings go up and down completely randomly.

Pair Corralation between KASPIKZ 1 and CrowdStrike Holdings

Assuming the 90 days horizon KASPIKZ 1 is expected to under-perform the CrowdStrike Holdings. But the stock apears to be less risky and, when comparing its historical volatility, KASPIKZ 1 is 1.25 times less risky than CrowdStrike Holdings. The stock trades about -0.07 of its potential returns per unit of risk. The CrowdStrike Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  34,335  in CrowdStrike Holdings on September 22, 2024 and sell it today you would earn a total of  590.00  from holding CrowdStrike Holdings or generate 1.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

KASPIKZ 1  vs.  CrowdStrike Holdings

KASPIKZ 1

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KASPIKZ 1 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KASPIKZ 1 may actually be approaching a critical reversion point that can send shares even higher in January 2025.

CrowdStrike Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CrowdStrike Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CrowdStrike Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KASPIKZ 1 and CrowdStrike Holdings

The main advantage of trading using opposite KASPIKZ 1 and CrowdStrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KASPIKZ 1 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' long position.

The idea behind KASPIKZ 1 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.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.