Correlation Between CSG Systems and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both CSG Systems 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 CSG Systems and CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSG Systems International and CyberArk Software, you can compare the effects of market volatilities on CSG Systems 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 CSG Systems with a short position of CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and CyberArk Software.
Diversification Opportunities for CSG Systems and CyberArk Software
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSG and CyberArk is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and CSG Systems 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 CSG Systems International 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 CSG Systems i.e., CSG Systems and CyberArk Software go up and down completely randomly.
Pair Corralation between CSG Systems and CyberArk Software
Given the investment horizon of 90 days CSG Systems is expected to generate 1.41 times less return on investment than CyberArk Software. But when comparing it to its historical volatility, CSG Systems International is 1.05 times less risky than CyberArk Software. It trades about 0.15 of its potential returns per unit of risk. CyberArk Software is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 28,775 in CyberArk Software on October 26, 2024 and sell it today you would earn a total of 7,088 from holding CyberArk Software or generate 24.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. CyberArk Software
Performance |
| Timeline |
| CSG Systems International |
| CyberArk Software |
CSG Systems and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and CyberArk Software
The main advantage of trading using opposite CSG Systems and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems 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.| CSG Systems vs. NetScout Systems | CSG Systems vs. Consensus Cloud Solutions | CSG Systems vs. Secureworks Corp | CSG Systems vs. Evertec |
| CyberArk Software vs. F5 Networks | CyberArk Software vs. Qualys Inc | CyberArk Software vs. VeriSign | CyberArk Software vs. Amdocs |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| 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 |