Correlation Between Core Scientific, and Crowdstrike Holdings

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

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

Diversification Opportunities for Core Scientific, and Crowdstrike Holdings

0.78

Correlation Coefficient

Core Scientific,  Crowdstrike Holdings

Poor diversification

The 3 months correlation between Core and Crowdstrike is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Core Scientific, Common and Crowdstrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crowdstrike Holdings and Core Scientific, 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 Core Scientific, Common 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 Core Scientific, i.e., Core Scientific, and Crowdstrike Holdings go up and down completely randomly.

Pair Corralation between Core Scientific, and Crowdstrike Holdings

Given the investment horizon of 90 days Core Scientific, Common is expected to generate 2.69 times more return on investment than Crowdstrike Holdings. However, Core Scientific, is 2.69 times more volatile than Crowdstrike Holdings. It trades about 0.13 of its potential returns per unit of risk. Crowdstrike Holdings is currently generating about 0.02 per unit of risk. If you would invest  875.00  in Core Scientific, Common on May 4, 2025 and sell it today you would earn a total of  390.00  from holding Core Scientific, Common or generate 44.57% return on investment over 90 days.

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

Core Scientific, Common  vs.  Crowdstrike Holdings

Core Scientific, Common

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Core Scientific, Common are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Core Scientific, showed solid returns over the last few months and may actually be approaching a breakup point.

Crowdstrike Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Crowdstrike Holdings is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Core Scientific, and Crowdstrike Holdings

The main advantage of trading using opposite Core Scientific, and Crowdstrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Scientific, 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 Core Scientific, Common 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.