Correlation Between Crowdstrike Holdings and Western Asset
Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and Western Asset 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 Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and Western Asset Municipal, you can compare the effects of market volatilities on Crowdstrike Holdings and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and Western Asset.
Diversification Opportunities for Crowdstrike Holdings and Western Asset
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crowdstrike and Western is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Western Asset Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Municipal 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Municipal has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Western Asset go up and down completely randomly.
Pair Corralation between Crowdstrike Holdings and Western Asset
Given the investment horizon of 90 days Crowdstrike Holdings is expected to under-perform the Western Asset. In addition to that, Crowdstrike Holdings is 13.61 times more volatile than Western Asset Municipal. It trades about -0.18 of its total potential returns per unit of risk. Western Asset Municipal is currently generating about -0.14 per unit of volatility. If you would invest 700.00 in Western Asset Municipal on September 2, 2025 and sell it today you would lose (3.00) from holding Western Asset Municipal or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crowdstrike Holdings vs. Western Asset Municipal
Performance |
| Timeline |
| Crowdstrike Holdings |
| Western Asset Municipal |
Crowdstrike Holdings and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crowdstrike Holdings and Western Asset
The main advantage of trading using opposite Crowdstrike Holdings and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Crowdstrike Holdings vs. Konoike Transport CoLtd | Crowdstrike Holdings vs. Healthy Coffee International | Crowdstrike Holdings vs. Knight Transportation | Crowdstrike Holdings vs. BJs Restaurants |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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