Correlation Between Global X and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Cybersecurity and CyberArk Software, you can compare the effects of market volatilities on Global X 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 Global X with a short position of CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and CyberArk Software.
Diversification Opportunities for Global X and CyberArk Software
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and CyberArk is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Global X Cybersecurity and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and Global X 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 Global X Cybersecurity 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 Global X i.e., Global X and CyberArk Software go up and down completely randomly.
Pair Corralation between Global X and CyberArk Software
Considering the 90-day investment horizon Global X is expected to generate 1.82 times less return on investment than CyberArk Software. But when comparing it to its historical volatility, Global X Cybersecurity is 1.66 times less risky than CyberArk Software. It trades about 0.25 of its potential returns per unit of risk. CyberArk Software is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 28,775 in CyberArk Software on August 28, 2024 and sell it today you would earn a total of 3,662 from holding CyberArk Software or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Cybersecurity vs. CyberArk Software
Performance |
| Timeline |
| Global X Cybersecurity |
| CyberArk Software |
Global X and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and CyberArk Software
The main advantage of trading using opposite Global X and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. iShares Cybersecurity and | Global X vs. First Trust NASDAQ | Global X vs. Global X Cloud | Global X vs. Amplify ETF Trust |
| CyberArk Software vs. GigaCloud Technology Class | CyberArk Software vs. Arqit Quantum | CyberArk Software vs. Cemtrex | CyberArk Software vs. Paysafe |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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