Correlation Between PennantPark Investment and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and CyberArk Software 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 PennantPark Investment and CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and CyberArk Software, you can compare the effects of market volatilities on PennantPark Investment and CyberArk Software 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 PennantPark Investment with a short position of CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and CyberArk Software.
Diversification Opportunities for PennantPark Investment and CyberArk Software
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PennantPark and CyberArk is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and PennantPark Investment 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 PennantPark Investment are associated (or correlated) with CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and CyberArk Software go up and down completely randomly.
Pair Corralation between PennantPark Investment and CyberArk Software
Assuming the 90 days horizon PennantPark Investment is expected to generate 1.03 times less return on investment than CyberArk Software. But when comparing it to its historical volatility, PennantPark Investment is 1.15 times less risky than CyberArk Software. It trades about 0.2 of its potential returns per unit of risk. CyberArk Software is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 30,860 in CyberArk Software on October 12, 2024 and sell it today you would earn a total of 2,200 from holding CyberArk Software or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. CyberArk Software
Performance |
| Timeline |
| PennantPark Investment |
| CyberArk Software |
PennantPark Investment and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and CyberArk Software
The main advantage of trading using opposite PennantPark Investment and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, CyberArk Software 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 CyberArk Software will offset losses from the drop in CyberArk Software's long position.| PennantPark Investment vs. Nomad Foods | PennantPark Investment vs. GEELY AUTOMOBILE | PennantPark Investment vs. MTY Food Group | PennantPark Investment vs. Spirent Communications plc |
| CyberArk Software vs. SQUIRREL MEDIA SA | CyberArk Software vs. SBI Insurance Group | CyberArk Software vs. The Hanover Insurance | CyberArk Software vs. TOWNSQUARE MEDIA INC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |