Correlation Between CyberArk Software and Traton SE
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By analyzing existing cross correlation between CyberArk Software and Traton SE, you can compare the effects of market volatilities on CyberArk Software and Traton SE 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 CyberArk Software with a short position of Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and Traton SE.
Diversification Opportunities for CyberArk Software and Traton SE
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CyberArk and Traton is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE and CyberArk Software 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 CyberArk Software are associated (or correlated) with Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of CyberArk Software i.e., CyberArk Software and Traton SE go up and down completely randomly.
Pair Corralation between CyberArk Software and Traton SE
Assuming the 90 days trading horizon CyberArk Software is expected to generate 1.6 times more return on investment than Traton SE. However, CyberArk Software is 1.6 times more volatile than Traton SE. It trades about 0.23 of its potential returns per unit of risk. Traton SE is currently generating about -0.02 per unit of risk. If you would invest 25,650 in CyberArk Software on September 2, 2024 and sell it today you would earn a total of 4,380 from holding CyberArk Software or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CyberArk Software vs. Traton SE
Performance |
| Timeline |
| CyberArk Software |
| Traton SE |
CyberArk Software and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and Traton SE
The main advantage of trading using opposite CyberArk Software and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.| CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc |
| Traton SE vs. Apollo Medical Holdings | Traton SE vs. CyberArk Software | Traton SE vs. Japan Medical Dynamic | Traton SE vs. Clearside Biomedical |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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