Correlation Between Crowdstrike Holdings and Small Cap

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

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

Diversification Opportunities for Crowdstrike Holdings and Small Cap

-0.04

Correlation Coefficient

Crowdstrike Holdings  Small Cap

Good diversification

The 3 months correlation between Crowdstrike and Small is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Small Cap Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Stock 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 Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Stock has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Small Cap go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Small Cap

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 2.18 times more return on investment than Small Cap. However, Crowdstrike Holdings is 2.18 times more volatile than Small Cap Stock. It trades about 0.12 of its potential returns per unit of risk. Small Cap Stock is currently generating about 0.07 per unit of risk. If you would invest  43,610  in Crowdstrike Holdings on September 12, 2025 and sell it today you would earn a total of  8,344  from holding Crowdstrike Holdings or generate 19.13% 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.  Small Cap Stock

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 unsteady basic indicators, Crowdstrike Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Small Cap Stock

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Small Cap Stock are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Small Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Crowdstrike Holdings and Small Cap

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

The idea behind Crowdstrike Holdings and Small Cap Stock 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.