Correlation Between CyberArk Software and Air Lease
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and Air Lease 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 Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and Air Lease, you can compare the effects of market volatilities on CyberArk Software and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and Air Lease.
Diversification Opportunities for CyberArk Software and Air Lease
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CyberArk and Air is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of CyberArk Software i.e., CyberArk Software and Air Lease go up and down completely randomly.
Pair Corralation between CyberArk Software and Air Lease
Assuming the 90 days trading horizon CyberArk Software is expected to generate 1.92 times more return on investment than Air Lease. However, CyberArk Software is 1.92 times more volatile than Air Lease. It trades about 0.16 of its potential returns per unit of risk. Air Lease is currently generating about 0.13 per unit of risk. If you would invest 27,780 in CyberArk Software on September 12, 2024 and sell it today you would earn a total of 3,010 from holding CyberArk Software or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CyberArk Software vs. Air Lease
Performance |
| Timeline |
| CyberArk Software |
| Air Lease |
CyberArk Software and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and Air Lease
The main advantage of trading using opposite CyberArk Software and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.| CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc |
| Air Lease vs. United Rentals | Air Lease vs. WillScot Mobile Mini | Air Lease vs. Superior Plus Corp | Air Lease vs. SIVERS SEMICONDUCTORS AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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