Correlation Between Cerberus Cyber and E Mini
Can any of the company-specific risk be diversified away by investing in both Cerberus Cyber and E Mini 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 Cerberus Cyber and E Mini into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerberus Cyber Sentinel and E Mini SP 500, you can compare the effects of market volatilities on Cerberus Cyber and E Mini 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 Cerberus Cyber with a short position of E Mini. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerberus Cyber and E Mini.
Diversification Opportunities for Cerberus Cyber and E Mini
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cerberus and ESUSD is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cerberus Cyber Sentinel and E Mini SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Mini SP and Cerberus Cyber 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 Cerberus Cyber Sentinel are associated (or correlated) with E Mini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Mini SP has no effect on the direction of Cerberus Cyber i.e., Cerberus Cyber and E Mini go up and down completely randomly.
Pair Corralation between Cerberus Cyber and E Mini
Given the investment horizon of 90 days Cerberus Cyber Sentinel is expected to under-perform the E Mini. In addition to that, Cerberus Cyber is 10.15 times more volatile than E Mini SP 500. It trades about -0.05 of its total potential returns per unit of risk. E Mini SP 500 is currently generating about 0.1 per unit of volatility. If you would invest 400,325 in E Mini SP 500 on August 26, 2024 and sell it today you would earn a total of 198,375 from holding E Mini SP 500 or generate 49.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.26% |
| Values | Daily Returns |
Cerberus Cyber Sentinel vs. E Mini SP 500
Performance |
| Timeline |
| Cerberus Cyber Sentinel |
| E Mini SP |
Cerberus Cyber and E Mini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerberus Cyber and E Mini
The main advantage of trading using opposite Cerberus Cyber and E Mini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerberus Cyber position performs unexpectedly, E Mini 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 E Mini will offset losses from the drop in E Mini's long position.| Cerberus Cyber vs. Hub Cyber Security | Cerberus Cyber vs. Hub Cyber Security | Cerberus Cyber vs. Arqit Quantum | Cerberus Cyber vs. Pagaya Technologies |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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