Correlation Between Crowdstrike Holdings and Ritchie Bros

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

Diversification Opportunities for Crowdstrike Holdings and Ritchie Bros

-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Crowdstrike and Ritchie is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Crowdstrike Holdings and Ritchie Bros Auctioneers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ritchie Bros Auctioneers 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 Ritchie Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ritchie Bros Auctioneers has no effect on the direction of Crowdstrike Holdings i.e., Crowdstrike Holdings and Ritchie Bros go up and down completely randomly.

Pair Corralation between Crowdstrike Holdings and Ritchie Bros

Given the investment horizon of 90 days Crowdstrike Holdings is expected to generate 1.87 times more return on investment than Ritchie Bros. However, Crowdstrike Holdings is 1.87 times more volatile than Ritchie Bros Auctioneers. It trades about 0.12 of its potential returns per unit of risk. Ritchie Bros Auctioneers is currently generating about -0.16 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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Crowdstrike Holdings  vs.  Ritchie Bros Auctioneers

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

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Ritchie Bros Auctioneers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Crowdstrike Holdings and Ritchie Bros Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Crowdstrike Holdings and Ritchie Bros

The main advantage of trading using opposite Crowdstrike Holdings and Ritchie Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crowdstrike Holdings position performs unexpectedly, Ritchie Bros 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 Ritchie Bros will offset losses from the drop in Ritchie Bros' long position.
The idea behind Crowdstrike Holdings and Ritchie Bros Auctioneers 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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