Correlation Between CyberArk Software and OLAM GROUP
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and OLAM GROUP 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 OLAM GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and OLAM GROUP LTD, you can compare the effects of market volatilities on CyberArk Software and OLAM GROUP 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 OLAM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and OLAM GROUP.
Diversification Opportunities for CyberArk Software and OLAM GROUP
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CyberArk and OLAM is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and OLAM GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLAM GROUP LTD 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 OLAM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLAM GROUP LTD has no effect on the direction of CyberArk Software i.e., CyberArk Software and OLAM GROUP go up and down completely randomly.
Pair Corralation between CyberArk Software and OLAM GROUP
Assuming the 90 days trading horizon CyberArk Software is expected to generate 1.42 times more return on investment than OLAM GROUP. However, CyberArk Software is 1.42 times more volatile than OLAM GROUP LTD. It trades about 0.27 of its potential returns per unit of risk. OLAM GROUP LTD is currently generating about -0.18 per unit of risk. If you would invest 31,120 in CyberArk Software on October 25, 2024 and sell it today you would earn a total of 3,320 from holding CyberArk Software or generate 10.67% 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. OLAM GROUP LTD
Performance |
| Timeline |
| CyberArk Software |
| OLAM GROUP LTD |
CyberArk Software and OLAM GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and OLAM GROUP
The main advantage of trading using opposite CyberArk Software and OLAM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, OLAM GROUP 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 OLAM GROUP will offset losses from the drop in OLAM GROUP's long position.| CyberArk Software vs. PROSIEBENSAT1 MEDIADR4 | CyberArk Software vs. SQUIRREL MEDIA SA | CyberArk Software vs. ZINC MEDIA GR | CyberArk Software vs. Townsquare Media |
| OLAM GROUP vs. Magic Software Enterprises | OLAM GROUP vs. Gol Intelligent Airlines | OLAM GROUP vs. Kingdee International Software | OLAM GROUP vs. AXWAY SOFTWARE EO |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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