Correlation Between Samsung Electronics and CrowdStrike Holdings,

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

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

Diversification Opportunities for Samsung Electronics and CrowdStrike Holdings,

-0.87

Correlation Coefficient

Samsung Electronics  CrowdStrike Holdings,

Pay attention - limited upside

The 3 months correlation between Samsung and CrowdStrike is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and CrowdStrike Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrowdStrike Holdings, and Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and CrowdStrike Holdings, go up and down completely randomly.

Pair Corralation between Samsung Electronics and CrowdStrike Holdings,

Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the CrowdStrike Holdings,. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.17 times less risky than CrowdStrike Holdings,. The stock trades about -0.19 of its potential returns per unit of risk. The CrowdStrike Holdings, is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  549,000  in CrowdStrike Holdings, on September 1, 2024 and sell it today you would earn a total of  156,300  from holding CrowdStrike Holdings, or generate 28.47% return on investment over 90 days.

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

Samsung Electronics Co  vs.  CrowdStrike Holdings,

Samsung Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samsung Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm 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 fairly unfluctuating basic indicators, CrowdStrike Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and CrowdStrike Holdings,

The main advantage of trading using opposite Samsung Electronics and CrowdStrike Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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 Samsung Electronics Co 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.