ALAB vs CRDO: Stock Returns, Risk & Volatility (2026)

Q: Which is a better investment: ALAB or CRDO?

Over the past year, CRDO looks like the better investment: it had higher total return (CRDO +61.4% vs ALAB +38.7%) and a higher Sharpe ratio (CRDO 0.94 vs ALAB 0.77). On risk, CRDO was less volatile (CRDO 88.4% vs ALAB 93.0%), ALAB had a smaller max drawdown (ALAB -49.7% vs CRDO -55.7%), and CRDO had less severe losses on the worst 5% of days (Expected Shortfall of CRDO -12.30% vs ALAB -13.07%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: ALAB or CRDO?

Over the past year, CRDO outperformed (+38.7% vs +61.4%) with a Sharpe ratio of 0.94.

Total Return

ALAB +38.7%

CRDO WIN +61.4%

Sharpe Ratio

ALAB 0.77

CRDO WIN 0.94

Annualized Volatility

ALAB 93.0%

CRDO WIN 88.4%

Max Drawdown

ALAB WIN -49.7%

CRDO -55.7%

Analysis period: 2025-02-18 to 2026-02-13

ALAB Total Return

↑ +38.7%

CRDO Total Return

↑ +61.4%

Relative Performance of ALAB vs CRDO (Normalized to 100)

ALAB CRDO

Normalized to 100 at start date for comparison

Key Takeaways

Total Return: ALAB delivered a +38.7% total return, while CRDO returned +61.4% over the same period. CRDO outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): CRDO had a higher Sharpe (0.94 vs 0.77), indicating better risk-adjusted performance.
Volatility (Annualized): ALAB was more volatile, with 93.0% annualized volatility, versus 88.4% for CRDO.
Maximum Drawdown: ALAB's maximum drawdown was -49.7%, while CRDO experienced a deeper drawdown of -55.7%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), ALAB's VaR was -8.89% and its Expected Shortfall (CVaR) was -13.07%; CRDO's were -9.63% and -12.30%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: ALAB -0.03 vs CRDO -0.10. Excess kurtosis: ALAB 3.01 vs CRDO 0.60. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): ALAB 6/7, CRDO 9/5. Worst day: ALAB -21.41% (2026-02-11) vs CRDO -14.18% (2025-02-27). Best day: ALAB +28.66% (2025-08-06) vs CRDO +22.58% (2025-04-09).
Risk ratios: Sortino - ALAB: 1.18 vs. CRDO: 1.41 , Calmar - ALAB: 0.79 vs. CRDO: 1.12 , Sterling - ALAB: 1.19 vs. CRDO: 1.90 , Treynor - ALAB: 0.30 vs. CRDO: 0.31 , Ulcer Index - ALAB: 25.92% vs. CRDO: 24.48%

Astera Labs vs Credo Correlation

0.64 Average Correlation

Astera Labs and Credo are strongly correlated over the past year. With a correlation of 0.64, these assets tend to move together, limiting diversification benefits.

For portfolio construction, this strong correlation means holding both ALAB and CRDO provides limited risk reduction — they're likely to decline together in downturns.

Metric	Value
Current (30-day)	0.64
Average (full period)	0.64
Minimum	0.27
Maximum	0.96

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.

Investment Comparison

If you invested $10,000 in each asset on February 18, 2025:

ALAB $13,865.12 +38.7%

CRDO $16,140.35 +61.4%

Difference: $2,275.23 (CRDO ahead)

Astera Labs and Credo: Risk Analysis

Astera Labs experienced its maximum drawdown of -49.7% from 2025-09-18 to 2026-02-12. It has not yet recovered to its previous peak.

Credo experienced its maximum drawdown of -55.7% from 2025-02-18 to 2025-04-04. It took 61 days to recover.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

Sharpe Ratio of ALAB and CRDO

ALAB Sharpe Ratio

↑ 0.77

CRDO Sharpe Ratio

↑ 0.94

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. CRDO had a higher Sharpe (0.94 vs 0.77), indicating better risk-adjusted performance.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of ALAB and CRDO

ALAB Sortino Ratio

↑ 1.18

CRDO Sortino Ratio

↑ 1.41

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). CRDO had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: ALAB 60.8% vs CRDO 58.9%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of ALAB and CRDO

ALAB Calmar Ratio

↑ 0.79

CRDO Calmar Ratio

↑ 1.12

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. CRDO posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of ALAB and CRDO

ALAB Sterling Ratio

↑ 1.19

CRDO Sterling Ratio

↑ 1.90

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). CRDO posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of ALAB and CRDO

ALAB Treynor Ratio

↑ 0.30

CRDO Treynor Ratio

↑ 0.31

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. CRDO posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of ALAB and CRDO

ALAB Ulcer Index

25.92%

CRDO Ulcer Index

24.48%

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. CRDO had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): Astera Labs vs. Credo

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Metric (1-Year)	ALAB	CRDO
5% VaR (daily log return)	-8.89%	-9.63%
5% Expected Shortfall (CVaR)	-13.07% (worst 13 days)	-12.30% (worst 13 days)
Skew	-0.03	-0.10
Excess kurtosis	3.01	0.60
2σ tail days (down / up)	6 / 7	9 / 5
Worst day	-21.41% (2026-02-11)	-14.18% (2025-02-27)
Best day	+28.66% (2025-08-06)	+22.58% (2025-04-09)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=249). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

When CRDO has a big down day, ALAB also does

22.2%

2 / 9 days

When ALAB has a big down day, CRDO also does

33.3%

2 / 6 days

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both ALAB and CRDO had a big down day (2σ)

Date (interval)	ALAB	CRDO
2025-04-03	-13.11%	-13.71%
2025-10-14	-19.03%	-13.44%

Days when ALAB had a big down day

Date (interval)	ALAB	CRDO
2025-04-03	-13.11%	-13.71%
2025-10-14	-19.03%	-13.44%
2025-12-02	-13.47%	+10.12%
2025-12-12	-14.31%	-6.84%
2026-02-11	-21.41%	-4.69%
2026-02-12	-11.92%	-5.16%

Days when CRDO had a big down day

Date (interval)	ALAB	CRDO
2025-02-27	-8.73%	-14.18%
2025-03-05	-1.52%	-13.97%
2025-04-03	-13.11%	-13.71%
2025-04-04	-4.92%	-10.34%
2025-04-10	-8.50%	-11.62%
2025-08-19	-8.24%	-10.48%
2025-10-14	-19.03%	-13.44%
2025-11-13	-8.44%	-10.85%
2026-02-04	-8.74%	-12.90%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Astera Labs vs Credo Volatility (ALAB vs CRDO)

ALAB Volatility

93.0%

±5.86% daily

CRDO Volatility

88.4%

±5.57% daily

Typical daily swing

ALAB

±5.86%

CRDO

±5.57%

Astera Labs's annualized volatility of 93.0% means it typically moves ±5.86% on any given day.

Credo's annualized volatility of 88.4% means it typically moves ±5.57% on any given day.

ALAB's higher volatility means a wider path to returns — this can be attractive for tactical, shorter-term exposure, while CRDO's smoother profile may better suit long-term allocators seeking steadier growth.

For comparison, the S&P 500 typically has 15-18% annualized volatility, translating to roughly ±1% daily moves. Higher volatility means larger potential gains but also larger potential losses.

Astera Labs vs Credo Performance Over Time

Metric	ALAB	CRDO
30 Days	-24.9%	-22.6%
90 Days	-10.4%	-16.5%
180 Days	-30.4%	4%
1 Year	N/A	N/A

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

Full Comparison of Astera Labs vs. Credo (1-Year)

Metric	ALAB	CRDO
Total Return	+38.7%	+61.4%
Annualized Volatility	93.0%	88.4%
Sharpe Ratio	0.77	0.94
Sortino Ratio	1.18	1.41
Calmar Ratio	0.79	1.12
Sterling Ratio	1.19	1.90
Treynor Ratio	0.30	0.31
Ulcer Index	25.92%	24.48%
Max Drawdown	-49.7%	-55.7%
Avg Correlation to S&P 500	0.45	0.56
5% VaR (daily log return)	-8.89%	-9.63%
5% Expected Shortfall (CVaR)	-13.07%	-12.30%
Skew	-0.03	-0.10
Excess kurtosis	3.01	0.60
2σ tail days (down / up)	6 / 7	9 / 5

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-02-18 → 2026-02-13 (last shared close).
Rolling correlation sample (shared closes): 220 rolling 30-day values (from 249 shared daily returns).
Annualization (days/year): ALAB: 252 days/year; CRDO: 252 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

ALAB: 4.20% over 2025-02-18 → 2026-02-13.

CRDO: 4.20% over 2025-02-18 → 2026-02-13.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

ALAB: ≈ -43.2%/yr

CRDO: ≈ -39.1%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

Astera Labs vs Credo: Frequently Asked Questions

Which has higher volatility: ALAB or CRDO?

ALAB showed higher volatility at 93.0% annualized, compared to 88.4% for CRDO Over the past year. Higher volatility means larger price swings in both directions.

Does ALAB provide diversification when held with CRDO?

ALAB and CRDO are strongly correlated over the past year, with an average correlation of 0.64. This strong correlation limits diversification benefits.

How bad are the worst 5% days for ALAB vs CRDO?

Over the past year, ALAB's 5% VaR was -8.89% and its 5% Expected Shortfall was -13.07% (worst 13 days). CRDO's were -9.63% and -12.30% (worst 13 days).

Do ALAB and CRDO crash together on bad days?

On shared dates (n=249), when CRDO has a 2σ down day, ALAB also does 22.2% (2/9 days). In the other direction, when ALAB has one, CRDO also does 33.3% (2/6 days).

Which has better risk-adjusted returns: ALAB or CRDO?

CRDO showed better risk-adjusted performance with a Sharpe ratio of 0.94 versus ALAB's 0.77 Over the past year.

Can ALAB and CRDO be combined in a portfolio?

Yes, though allocation sizing matters. Their strong correlation provides limited risk reduction since they tend to move together. ALAB's higher volatility (93.0%) means even small allocations can materially impact overall portfolio risk.