Correlation Between Credo Technology and Solid Power

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

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

Diversification Opportunities for Credo Technology and Solid Power

0.17

Correlation Coefficient

Credo Technology  Solid Power

Average diversification

The 3 months correlation between Credo and Solid is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Credo Technology Group and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power and Credo Technology 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 Credo Technology Group are associated (or correlated) with Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Credo Technology i.e., Credo Technology and Solid Power go up and down completely randomly.

Pair Corralation between Credo Technology and Solid Power

Given the investment horizon of 90 days Credo Technology Group is expected to generate 0.92 times more return on investment than Solid Power. However, Credo Technology Group is 1.09 times less risky than Solid Power. It trades about -0.07 of its potential returns per unit of risk. Solid Power is currently generating about -0.25 per unit of risk. If you would invest  17,316  in Credo Technology Group on October 6, 2025 and sell it today you would lose (2,994) from holding Credo Technology Group or give up 17.29% of portfolio value over 90 days.

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

Credo Technology Group  vs.  Solid Power

Credo Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Credo Technology Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, Credo Technology may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Solid Power

Risk-Adjusted Performance

Weakest

Over the last 90 days Solid Power has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Solid Power is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Credo Technology and Solid Power

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

The idea behind Credo Technology Group and Solid Power 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.