Correlation Between CyberArk Software and AMP
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and AMP 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 CyberArk Software and AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and AMP, you can compare the effects of market volatilities on CyberArk Software and AMP 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 AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and AMP.
Diversification Opportunities for CyberArk Software and AMP
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CyberArk and AMP is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP 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 AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of CyberArk Software i.e., CyberArk Software and AMP go up and down completely randomly.
Pair Corralation between CyberArk Software and AMP
Assuming the 90 days trading horizon CyberArk Software is expected to generate 0.98 times more return on investment than AMP. However, CyberArk Software is 1.02 times less risky than AMP. It trades about 0.1 of its potential returns per unit of risk. AMP is currently generating about 0.03 per unit of risk. If you would invest 11,525 in CyberArk Software on September 14, 2024 and sell it today you would earn a total of 19,335 from holding CyberArk Software or generate 167.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
CyberArk Software vs. AMP
Performance |
| Timeline |
| CyberArk Software |
| AMP |
CyberArk Software and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and AMP
The main advantage of trading using opposite CyberArk Software and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |