Correlation Between Crowdstrike Holdings and Aurora Mobile

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

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

Diversification Opportunities for Crowdstrike Holdings and Aurora Mobile

-0.08

Correlation Coefficient

Crowdstrike Holdings  Aurora Mobile

Good diversification

The 3 months correlation between Crowdstrike and Aurora is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile 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 Aurora Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Mobile has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Aurora Mobile go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Aurora Mobile

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 0.74 times more return on investment than Aurora Mobile. However, Crowdstrike Holdings is 1.35 times less risky than Aurora Mobile. It trades about 0.03 of its potential returns per unit of risk. Aurora Mobile is currently generating about -0.15 per unit of risk. If you would invest  47,618  in Crowdstrike Holdings on July 14, 2025 and sell it today you would earn a total of  1,748  from holding Crowdstrike Holdings or generate 3.67% return on investment over 90 days.

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

Crowdstrike Holdings  vs.  Aurora Mobile

Crowdstrike Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 2 (%) 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.

Aurora Mobile

Risk-Adjusted Performance

Weakest

Over the last 90 days Aurora Mobile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Crowdstrike Holdings and Aurora Mobile

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

The idea behind Crowdstrike Holdings and Aurora Mobile 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.