Correlation Between First Solar and Crowdstrike Holdings
Can any of the company-specific risk be diversified away by investing in both First Solar 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 First Solar and Crowdstrike Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Solar and Crowdstrike Holdings, you can compare the effects of market volatilities on First Solar 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 First Solar with a short position of Crowdstrike Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Solar and Crowdstrike Holdings.
Diversification Opportunities for First Solar and Crowdstrike Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Crowdstrike is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding First Solar and Crowdstrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crowdstrike Holdings and First Solar 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 First Solar 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 First Solar i.e., First Solar and Crowdstrike Holdings go up and down completely randomly.
Pair Corralation between First Solar and Crowdstrike Holdings
Given the investment horizon of 90 days First Solar is expected to generate 2.28 times more return on investment than Crowdstrike Holdings. However, First Solar is 2.28 times more volatile than Crowdstrike Holdings. It trades about 0.12 of its potential returns per unit of risk. Crowdstrike Holdings is currently generating about -0.21 per unit of risk. If you would invest 17,913 in First Solar on May 31, 2025 and sell it today you would earn a total of 1,789 from holding First Solar or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Solar vs. Crowdstrike Holdings
Performance |
| Timeline |
| First Solar |
| Crowdstrike Holdings |
First Solar and Crowdstrike Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Solar and Crowdstrike Holdings
The main advantage of trading using opposite First Solar and Crowdstrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Solar 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.| First Solar vs. SolarEdge Technologies | First Solar vs. Enphase Energy | First Solar vs. Canadian Solar | First Solar vs. Sunrun Inc |
| Crowdstrike Holdings vs. Palo Alto Networks | Crowdstrike Holdings vs. Zscaler | Crowdstrike Holdings vs. Cloudflare | Crowdstrike Holdings vs. Okta Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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