Correlation Between Glimpse and Crowdstrike Holdings

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

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

Diversification Opportunities for Glimpse and Crowdstrike Holdings

-0.72

Correlation Coefficient

Glimpse  Crowdstrike Holdings

Pay attention - limited upside

The 3 months correlation between Glimpse and Crowdstrike is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Crowdstrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crowdstrike Holdings and Glimpse 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 Glimpse Group 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 Glimpse i.e., Glimpse and Crowdstrike Holdings go up and down completely randomly.

Pair Corralation between Glimpse and Crowdstrike Holdings

Given the investment horizon of 90 days Glimpse is expected to generate 1.99 times less return on investment than Crowdstrike Holdings. In addition to that, Glimpse is 2.7 times more volatile than Crowdstrike Holdings. It trades about 0.04 of its total potential returns per unit of risk. Crowdstrike Holdings is currently generating about 0.21 per unit of volatility. If you would invest  31,094  in Crowdstrike Holdings on August 30, 2024 and sell it today you would earn a total of  3,665  from holding Crowdstrike Holdings or generate 11.79% return on investment over 90 days.

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

Glimpse Group  vs.  Crowdstrike Holdings

Glimpse Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glimpse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Crowdstrike Holdings

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Crowdstrike Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Glimpse and Crowdstrike Holdings

The main advantage of trading using opposite Glimpse and Crowdstrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glimpse 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 Glimpse Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.