Correlation Between CyberArk Software and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and Geely Automobile 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 Geely Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and Geely Automobile Holdings, you can compare the effects of market volatilities on CyberArk Software and Geely Automobile 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 Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and Geely Automobile.
Diversification Opportunities for CyberArk Software and Geely Automobile
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CyberArk and Geely is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings 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 Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of CyberArk Software i.e., CyberArk Software and Geely Automobile go up and down completely randomly.
Pair Corralation between CyberArk Software and Geely Automobile
Assuming the 90 days trading horizon CyberArk Software is expected to generate 1.0 times more return on investment than Geely Automobile. However, CyberArk Software is 1.0 times less risky than Geely Automobile. It trades about 0.16 of its potential returns per unit of risk. Geely Automobile Holdings is currently generating about 0.08 per unit of risk. If you would invest 30,030 in CyberArk Software on October 30, 2024 and sell it today you would earn a total of 3,930 from holding CyberArk Software or generate 13.09% 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. Geely Automobile Holdings
Performance |
| Timeline |
| CyberArk Software |
| Geely Automobile Holdings |
CyberArk Software and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and Geely Automobile
The main advantage of trading using opposite CyberArk Software and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile's long position.| CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc |
| Geely Automobile vs. LANDSEA GREEN MANAGEMENT | Geely Automobile vs. AEGEAN AIRLINES | Geely Automobile vs. Corporate Travel Management | Geely Automobile vs. American Airlines Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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