Correlation Between Workday and Credo Technology

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

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

Diversification Opportunities for Workday and Credo Technology

0.15

Correlation Coefficient

Workday  Credo Technology

Average diversification

The 3 months correlation between Workday and Credo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Workday and Credo Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credo Technology and Workday 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 Workday are associated (or correlated) with Credo Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credo Technology has no effect on the direction of Workday i.e., Workday and Credo Technology go up and down completely randomly.

Pair Corralation between Workday and Credo Technology

Given the investment horizon of 90 days Workday is expected to generate 0.35 times more return on investment than Credo Technology. However, Workday is 2.89 times less risky than Credo Technology. It trades about -0.07 of its potential returns per unit of risk. Credo Technology Group is currently generating about -0.13 per unit of risk. If you would invest  23,488  in Workday on July 19, 2025 and sell it today you would lose (728.00) from holding Workday or give up 3.1% of portfolio value over 90 days.

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

Workday  vs.  Credo Technology Group

Workday

Risk-Adjusted Performance

Weakest

Over the last 90 days Workday has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Workday is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credo Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Credo Technology Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Credo Technology displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Workday and Credo Technology

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

The idea behind Workday and Credo Technology Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.