Correlation Between Crowdstrike Holdings and KLA Tencor

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Can any of the company-specific risk be diversified away by investing in both Crowdstrike Holdings and KLA Tencor 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 KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crowdstrike Holdings and KLA Tencor, you can compare the effects of market volatilities on Crowdstrike Holdings and KLA Tencor 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 KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crowdstrike Holdings and KLA Tencor.

Diversification Opportunities for Crowdstrike Holdings and KLA Tencor

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Crowdstrike and KLA is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor 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 KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and KLA Tencor go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and KLA Tencor

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.63 times less return on investment than KLA Tencor. But when comparing it to its historical volatility, Crowdstrike Holdings is 1.01 times less risky than KLA Tencor. It trades about 0.12 of its potential returns per unit of risk. KLA Tencor is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  87,054  in KLA Tencor on August 29, 2025 and sell it today you would earn a total of  28,853  from holding KLA Tencor or generate 33.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Crowdstrike Holdings  vs.  KLA Tencor

 Performance 
       Timeline  
Crowdstrike Holdings 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
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 weak basic indicators, Crowdstrike Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.
KLA Tencor 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in KLA Tencor are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, KLA Tencor exhibited solid returns over the last few months and may actually be approaching a breakup point.

Crowdstrike Holdings and KLA Tencor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Crowdstrike Holdings and KLA Tencor

The main advantage of trading using opposite Crowdstrike Holdings and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, KLA Tencor 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 KLA Tencor will offset losses from the drop in KLA Tencor's long position.
The idea behind Crowdstrike Holdings and KLA Tencor 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 CEOs Directory module to screen CEOs from public companies around the world.

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