Correlation Between Crowdstrike Holdings and Dimensional Targeted

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

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

Diversification Opportunities for Crowdstrike Holdings and Dimensional Targeted

-0.39

Correlation Coefficient

Crowdstrike Holdings  Dimensional Targeted

Very good diversification

The 3 months correlation between Crowdstrike and Dimensional is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Dimensional Targeted Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional Targeted 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 Dimensional Targeted. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional Targeted has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Dimensional Targeted go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Dimensional Targeted

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 2.33 times more return on investment than Dimensional Targeted. However, Crowdstrike Holdings is 2.33 times more volatile than Dimensional Targeted Value. It trades about 0.12 of its potential returns per unit of risk. Dimensional Targeted Value is currently generating about 0.02 per unit of risk. If you would invest  42,806  in Crowdstrike Holdings on September 7, 2025 and sell it today you would earn a total of  8,397  from holding Crowdstrike Holdings or generate 19.62% 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.  Dimensional Targeted Value

Crowdstrike Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Crowdstrike Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Dimensional Targeted

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dimensional Targeted Value are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Dimensional Targeted is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Crowdstrike Holdings and Dimensional Targeted

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

The idea behind Crowdstrike Holdings and Dimensional Targeted Value 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.