Correlation Between Crowdstrike Holdings and Health Biotchnology

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

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

Diversification Opportunities for Crowdstrike Holdings and Health Biotchnology

0.43

Correlation Coefficient

Crowdstrike Holdings  Health Biotchnology

Very weak diversification

The 3 months correlation between Crowdstrike and Health is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Health Biotchnology Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health Biotchnology 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 Health Biotchnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Biotchnology has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Health Biotchnology go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Health Biotchnology

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 2.19 times more return on investment than Health Biotchnology. However, Crowdstrike Holdings is 2.19 times more volatile than Health Biotchnology Portfolio. It trades about 0.09 of its potential returns per unit of risk. Health Biotchnology Portfolio is currently generating about 0.1 per unit of risk. If you would invest  44,477  in Crowdstrike Holdings on September 14, 2025 and sell it today you would earn a total of  6,001  from holding Crowdstrike Holdings or generate 13.49% return on investment over 90 days.

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

Crowdstrike Holdings  vs.  Health Biotchnology Portfolio

Crowdstrike Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Crowdstrike Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Health Biotchnology

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Health Biotchnology Portfolio are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Health Biotchnology may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Crowdstrike Holdings and Health Biotchnology

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

The idea behind Crowdstrike Holdings and Health Biotchnology Portfolio 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 Global Correlations module to find global opportunities by holding instruments from different markets.