Correlation Between Crowdstrike Holdings and Asana

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

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

Diversification Opportunities for Crowdstrike Holdings and Asana

-0.64

Correlation Coefficient

Crowdstrike Holdings  Asana

Excellent diversification

The 3 months correlation between Crowdstrike and Asana is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Asana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asana Inc 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 Asana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asana Inc has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Asana go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Asana

Given the investment horizon of 90 days Crowdstrike Holdings is expected to under-perform the Asana. But the stock apears to be less risky and, when comparing its historical volatility, Crowdstrike Holdings is 1.59 times less risky than Asana. The stock trades about -0.37 of its potential returns per unit of risk. The Asana Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,427  in Asana Inc on May 5, 2025 and sell it today you would lose (26.00) from holding Asana Inc or give up 1.82% of portfolio value over 90 days.

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

Crowdstrike Holdings  vs.  Asana Inc

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.

Asana Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asana Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Crowdstrike Holdings and Asana

The main advantage of trading using opposite Crowdstrike Holdings and Asana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Asana 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 Asana will offset losses from the drop in Asana's long position.

The idea behind Crowdstrike Holdings and Asana Inc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.