Correlation Between Fastly and Crowdstrike Holdings

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

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

Diversification Opportunities for Fastly and Crowdstrike Holdings

0.13

Correlation Coefficient

Fastly  Crowdstrike Holdings

Average diversification

The 3 months correlation between Fastly and Crowdstrike is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Inc and Crowdstrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crowdstrike Holdings and Fastly 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 Fastly Inc 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 Fastly i.e., Fastly and Crowdstrike Holdings go up and down completely randomly.

Pair Corralation between Fastly and Crowdstrike Holdings

Given the investment horizon of 90 days Fastly Inc is expected to generate 2.07 times more return on investment than Crowdstrike Holdings. However, Fastly is 2.07 times more volatile than Crowdstrike Holdings. It trades about 0.08 of its potential returns per unit of risk. Crowdstrike Holdings is currently generating about 0.07 per unit of risk. If you would invest  578.00  in Fastly Inc on May 1, 2025 and sell it today you would earn a total of  107.00  from holding Fastly Inc or generate 18.51% return on investment over 90 days.

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

Fastly Inc  vs.  Crowdstrike Holdings

Fastly Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fastly Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady essential indicators, Fastly showed solid returns over the last few months and may actually be approaching a breakup point.

Crowdstrike Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Crowdstrike Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Fastly and Crowdstrike Holdings

The main advantage of trading using opposite Fastly and Crowdstrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly 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 Fastly Inc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.