Correlation Between Cerberus Cyber and Repay Holdings
Can any of the company-specific risk be diversified away by investing in both Cerberus Cyber and Repay Holdings 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 Repay Holdings 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 Repay Holdings Corp, you can compare the effects of market volatilities on Cerberus Cyber and Repay Holdings 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 Repay Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerberus Cyber and Repay Holdings.
Diversification Opportunities for Cerberus Cyber and Repay Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cerberus and Repay is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cerberus Cyber Sentinel and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp 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 Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Cerberus Cyber i.e., Cerberus Cyber and Repay Holdings go up and down completely randomly.
Pair Corralation between Cerberus Cyber and Repay Holdings
Given the investment horizon of 90 days Cerberus Cyber Sentinel is expected to generate 2.35 times more return on investment than Repay Holdings. However, Cerberus Cyber is 2.35 times more volatile than Repay Holdings Corp. It trades about 0.38 of its potential returns per unit of risk. Repay Holdings Corp is currently generating about 0.06 per unit of risk. If you would invest 85.00 in Cerberus Cyber Sentinel on September 2, 2024 and sell it today you would earn a total of 53.00 from holding Cerberus Cyber Sentinel or generate 62.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cerberus Cyber Sentinel vs. Repay Holdings Corp
Performance |
| Timeline |
| Cerberus Cyber Sentinel |
| Repay Holdings Corp |
Cerberus Cyber and Repay Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerberus Cyber and Repay Holdings
The main advantage of trading using opposite Cerberus Cyber and Repay Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerberus Cyber position performs unexpectedly, Repay Holdings 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 Repay Holdings will offset losses from the drop in Repay Holdings' long position.| Cerberus Cyber vs. Palo Alto Networks | Cerberus Cyber vs. GigaCloud Technology Class | Cerberus Cyber vs. Pagaya Technologies | Cerberus Cyber vs. Telos Corp |
| Repay Holdings vs. Global Blue Group | Repay Holdings vs. Optiva Inc | Repay Holdings vs. Sangoma Technologies Corp | Repay Holdings vs. Evertec |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |