Correlation Between CyberArk Software and SCANDMEDICAL SOLDK-040
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on CyberArk Software and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and SCANDMEDICAL SOLDK-040.
Diversification Opportunities for CyberArk Software and SCANDMEDICAL SOLDK-040
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CyberArk and SCANDMEDICAL is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of CyberArk Software i.e., CyberArk Software and SCANDMEDICAL SOLDK-040 go up and down completely randomly.
Pair Corralation between CyberArk Software and SCANDMEDICAL SOLDK-040
Assuming the 90 days trading horizon CyberArk Software is expected to generate 0.3 times more return on investment than SCANDMEDICAL SOLDK-040. However, CyberArk Software is 3.38 times less risky than SCANDMEDICAL SOLDK-040. It trades about 0.1 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about 0.03 per unit of risk. If you would invest 12,270 in CyberArk Software on October 16, 2024 and sell it today you would earn a total of 21,260 from holding CyberArk Software or generate 173.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CyberArk Software vs. SCANDMEDICAL SOLDK 040
Performance |
| Timeline |
| CyberArk Software |
| SCANDMEDICAL SOLDK 040 |
CyberArk Software and SCANDMEDICAL SOLDK-040 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and SCANDMEDICAL SOLDK-040
The main advantage of trading using opposite CyberArk Software and SCANDMEDICAL SOLDK-040 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 will offset losses from the drop in SCANDMEDICAL SOLDK-040's long position.| CyberArk Software vs. MPH Health Care | CyberArk Software vs. The Hongkong and | CyberArk Software vs. Siemens Healthineers AG | CyberArk Software vs. MELIA HOTELS |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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